As I'm sure many of you know its hard to come up with 20% when buying commercial property, but where there is a will there is a way, or so they say. I think I've just demonstrated my rhymning abilities. So here is the scenario. I have a very motivated client. He's really pushing to buy 1,2, and possibly a third property, but the catch is, he has no cash.
In the past, it was possible to do an 80% first- financed by the institution of you choice, and have the owner hold the 2nd for 20-25%. The local banks that we typically use for commercial lending are telling us that at this point, these programs are not available. We have already had the owners of two of the prospect properties agree to hold a second at 7% amortized over 30 years with a 5 year balloon. The numbers work to do this and we did them conservatively.
If any of you lenders out there think you can help me and my client out, or have any advice/feedback I'd love to have you either contact me or reply below. The properties are located in central Pennsylvania if that would be a factor for any of you.
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David E. Monsour, Realtor
Keller Williams Keystone Realty, Gettysburg, PA 17325