Thread: The Best Kept Secret In Commercial Lending

Sounds like an interesting program. Thanks for sharing and I'm sure many of us are interested in following your link.

This sounds great. My partner and I are looking at a small commercial strip plaza in Atlanta. In what state is this loan available. Also, does the loan have to be of a certain amount? What is the interest rate associated with this loan? Is this just a one loan with an LTV of 90% or multiple loans?

Thanks.

One "secret" is to use hard money loans to buy commercial reo properties you pay more for the money but you won't loss the opportunity . When the market changes 2-3 years from now the value will double or triple. The best time to buy will be the end of 2009 and 2010

Labailout, I have to disagree with your suggestion of hard money. Why would anyone want to borrow at a higher rate and shorter amortization and a lower loan to value, when a borrower can finance up to 90% on commercial real estate using our 10% down commercial loan program and have the most competitive rates with long term amortization.

Please understand, that I am not trying to diss your suggestion, I just don't see the advantage to the borrower.

You are 100% correct when it comes to normal refinance or normal purchase of commercial properties. However there are situation where hard money is called for. It is obviously the only solution after banks declined the loan by reasons other than equity but there is another situation when a borrower need cash fast and cannot wait for bank approval. There are now and there will be more and more foreclosures in the commercial market. A business owner can take advantage of buying a property below market price but he can do it only if he act fast and have the cash/loan to close quickly or else somebody else grab the property. Since time is of the essence when it comes to bidding on REOs a business owner need to decide on buying a property for 40% below market and paying hard money's higher rates and points or just wait and do nothing. I've been arranging hard money loans in the past 30 years. About 30% of my transaction where made to borrowers with perfect credit and good financials. When People ask me about arranging a loan I will, of course, always try conventional lenders if it is even vaguely possible.
It does appear that you have a very good product and I like to see if you can help some of the borrowers who logged into my site seeking commercial loans in various part of the nation

Labailout,

Let's talk soon and see what we can do. In the meantime, if you are interested, I have an affiliate program and am presently organizing our first affiliate group (there will be a total of 20 members). Would you be interested in learning and marketing our mortgage program? If so, I must complete 15 posts before I can add my url to my posts. However, in the meantime, if you would like to talk about it, please send me your contact information and I will send you the link to get the information.


Best Regards,

Sean P. McGrover
Option Capital Management LLC.

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one of the sites that can provide you with a lending for your needs mainly in internetwebhosting and also real estate....

Originally Posted by labailout

You are 100% correct when it comes to normal refinance or normal purchase of commercial properties. However there are situation where hard money is called for. It is obviously the only solution after banks declined the loan by reasons other than equity but there is another situation when a borrower need cash fast and cannot wait for bank approval.

Hmm, sometimes H$ is needed, but if you are buying right, and the margins/upside is there, generally it is not hard to find the money. Since commercial notes are based mostly on the property's performance and sure the principals involved in the transaction (the lender wants to be sure that the principals can manage the property correctly, and not end up in FC themselves.) Partnering with experienced investors helps a lot, when you are just starting out, as not only can they provide your loan package with experienced principals, they can oversee the deal, to make sure that all the due diligence has been completed, and nothing has been missed. Nothing worse than not running the right numbers, and what once looked like a +CF property turns into a severely -CF property.

Well, that's all I wanted to say for now.

Thanks!

Michael Suess
The REI Training Warehouse, LLC