Financial Information
I want to buy an apartment building. What are my financing options?
I have to put anything. I was told I would need at least 20%, the $ 100k for the property I in. If the seller is willing to finance 20% of banks would bail’m interested in would allow me to finance this property way? Or I could make a business plan for a bank for the purchase in full?
response to false RELIABLE financing
Nope. Banks not to lend for commercial real estate, unless you pay with your own substantial resources.
This entry was posted by admin on July 9, 2011 at 6:56 pm, and is filed under Business Finance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.
- Interim Financing – the software of the criteria?
- Interim Financing – curse or blessing
- Take advantage of the selection amongst financing
- Obtaining Automobile Financing – The greatest way to purchase a automobile with bad credit
- All About Employed Vehicle Financing With Inexpensive Costs
- A want employ Vehicle Loans Vehicle Finance Broker
- Bridge loans and interim financing Characteristic
- 3 items you want to watch out for, if ever, Foreign exchange Trading Accounts
- Bridge Financing
- Utilized Financing Opportunities
Any legitimate bank will research your finances and find out that you are not putting up your own money for the financing. That will probably scare them off. I doubt any legitimate bank would finance the whole amount for any reason. Too much danger of losing a lot of money. If they did that then you are not really on the hook for much. If the deal fell thru you could walk away and not lose too much. Your credit would be ripped to shreds but lots of people do not care about that. Sure, the bank takes the property but that is really no skin off of your back because you did not own it before. Now, the bank is stuck with a property that they have to unload. They usually lose money when they foreclose. However, they have to foreclose and cut the losses there. Banks have been burned too much by financing 100%.
The type of lender that will finance 100% are the types who are trying to rip you off in one way or another. Some will set you up with a big interest rate. Some will hit you with a ton of fees and penalties and so forth. They have a shopping list of stuff that will cost you money.
I would be really afraid if the current owner tries to influence you to go to a particular lender or bank. That would be a pretty good sign you are walking into a scam. There are some property owners who do this on a regular basis. They lure someone in to buy and arrange the financing themselves or thru an agent they are in league with. They soak up as much money as they can and take the place back after awhile when the person falls behind on payments. Of course the person will fall behind the payments because these guys set up that way. Payments that are too high or a balloon payment or something. These guys end up with the money and the property. They then go and look for another victim. The sad part is they are legal enough for most authorities to not care.