Off topic but: Any hard money lenders in here?

yeah its always difficult to buy a 400k condo with no money

It is easy in the residential markets but harder in the commercial

Hard money sucks, I looked at a HM lender 2yrs ago for one of my properties... I'm so happy I didn't go that route! They can take back the property if you can't get refinannaced and you will also have to pay points and an outrageous fee

Hard money as in.... chop your right pinky off if the payment is late?

I was thinking the same

Are you looking for people who don't take "money in motion" as an answer?

http://en.wikipedia.org/wiki/Hard_money_loan

You're looking at around 11%-20% rate plus potentially points upfront.
Though it could be worth it... but 95% LTV is very high, it would have to have a strong appraisal

Its a great commercial condo in an amazing building in Boston. Very secure investment but yes its hard to get a loan with only 5% down so I was looking for some outside the box options.

Commercial property 60% to 65% LTV at best.
Get the seller agree to carrying back a sizable 2nd (seller's note).

You're not getting 95% LTV unless the HML has no idea what they're doing, but I've never met one that doesn't, so good luck with that.

So basically you want to have almost nothing invested and nothing to risk but you want to borrow someone else's money to do it?

It doesn't work like that.

Are you sure the $430K price is really a great deal?

Are the property taxes high? ... are the other units owned? ... many being leased out? ... one or more in foreclosure / other distress? ... what's the future going forward?

Traditional office space seems redundant in the world of the internet, outsourcing, and offshoring.

If the space you're seeking is suitable, as in people would likely go there, for say a physical rehab facility, doctor's office, law office, etc *and* is more ideal than surrounding properties for such uses, then perhaps it has great potential.

Do you have a tenant booked or specific use in mind? ... or are you buying it figuring it will simply appreciate in value?

Rambling on ... and it may seem as if I've gone off on a tangent, but all of the above relates to whether one will give you such a loan with so little down.

The seller may be willing to loan part of the amount ... and also, if you own other real estate, you may be able to collateralize it for the loan - extremely risky though, since then you could end up losing a lot more than just the property you're seeking to buy.

Be careful who you deal with - not just from a physical safety aspect, but also from a contract aspect - some private loans may contain provisions allowing the lender to sell the property upon missing just one payment, or even potentially before, if the property value is deemed by the lender to have significantly declined. Get an experienced attorney involved before signing anything, especially if doing a private / non-bank loan.

Ron

Actually it does if you're smart and have good collateral or can talk right.

you are probably shit out of luck man, unless the circumstances are unusual and you have some good hookup, you aren't going to get 95% LTV loan...

but tell us more, what's the story? what makes you think this property is such a good deal?

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