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BuoyChaser
10-20-2006, 02:37 PM
looking at investment properties for the first time, what's the scoop on commercial lending and getting renters to pay the mortgage/taxes and proving that back to lender???

are there national commercial lending banks for this purpose???

Monte
10-20-2006, 04:10 PM
Rental homes can be a good thing or a nightmare... Depends on the tenant. Most banks will finance rental property, the nationals and the locals but the rate will be a little higher. I've got several clients that do that as a primary income producer.. Most of them look into repo homes. I'm not sure of the proceedures there, but here all of the forclosures are printed in the newspaper along with all the other legal announcements.. executor notices and such.. Then the banks auction the property off on the courtsquare steps.. just make sure to do a thorough search of the deed to insure you don't get burned. Of course that's what real estate attys are for.... Good luck with it.. I'd probably pick a bank and talk to the loan officers first... hope that helps

bfrank
10-20-2006, 05:49 PM
Try this for a search.
http://www.scotsmanguide.com/
We used to use this as a guide.
If you are looking at residential investment, most banks and lenders will go 70 to 80% LTV on a good credit score.

If you are talking Office or non residential it is still much the same guidelines. There are different types of commercial leases that you can use. Do a search for triple net (NNN), gross, and modified gross. You should be able to get some info

dapicatti
10-21-2006, 06:37 PM
We have owned rentals for years.....we always use a rental management company- they do the credit checks, collect rent and schedule repairs. It cost's a bit per unit but we have never had a problem getting the rent or having to evict someone who hasn't paid. If you do go with residential rentals, I would highly reccomend it.