good commercial lender that will finance up to 80% of the FINAL appraised valkue with
a 20 year fixed rate loan or 30 year amortized adjustable. Give me a call if interested.
267 992 7276
VOTED BEST OF BUCKS 2010
If you email me, I will send you a cash flow evaluator to analyze a performa you will have to construct. Based on the performa (what the future income / expense will be) you will base your top appraised value.
The formula you will need to use for your offer is:
1) Top appraised value (minus) repairs needed, divided by 2
That formula will be 50% of the AS-IS value.
This is assuming you are using:
A) Hard Money
B) Private Money
Since the seller is distressed, and cannot sell this property to ANYONE but a cash buyer, I would suggest you come up with some owner financing senarios. For instance, if you have the cash and know how to fix the property up, ask the owner to finance you with zero money down.
You can also do a master lease option, where essentially you are leasing the entire 6 unit from the owner with an option to buy it later down the line. You agree to pay the owner more in the future for giving you an option to buy. And you can negotiate in the contract to ask the owner for a construction budget.
Those are just a few ideas. But, once again, this property WILL NOT qualify for traditional commercial financing. This is considered a high risk loan that only a hard money lender or private lender will make.