How do I find a commercial partner who has money and credit and I have neither?
Sunday, February 21st, 2010 at
6:57 pm
I’ve been negotiating on several properties where transactions are being structured so that there is senior position of 70% LTV and a junior position of 30% held by the seller. I’ve been having generic drugs without prescription more sellers agree to my terms and are accepting the offers that I’m making but some of the lenders that I’ve spoken with would like to see the borrow put at least 5%-10% down themselves.
1.How can I structure these transactions so that everyone wins?
2.What’s the best way to go about working with someone to raise the needed cash for some of the needed down payment and soft cost (appraisal, attorney fees, etc) that will occur in closing these transactions?
Attempting to get into the real estate market without any cash or necessary credit was possible a few years ago, but that door has been closed. I pat you on the back for your negotiation skills to allow for a 30% seller holdback on prospective purchases but a hold back isn’t recognized as an equitable investment by the borrower thus is useless unless you invest some of your own money but can only get financing for 70% of the property value. Since there is no way to structure these without a personal investment you need to find money from someone else. And the best place to find money is to start hanging around where people with money hang out. Wanna be realestate investors are out there and are waiting to meet an eager beaver like yourself who has a business plan to be fulfilled. Good Luck.