OfflineIf the commercial property is currently being helpd in a trust or other entity, you might be able to assume ownership of that entity and refinance the property.
Here is how it works. The property must be the only property held by that entity. You will propose to the seller that you become a member of their entity with the right to refinance the property within a specific period of time or else the contract is null and void. You don't have any other rights than to refinance. The property you are looking at must have sufficeint cashflow to cover the refinance amount and the LTV meet the lenders criteria or slese they will not refinance the deal. In most cases, you will have enough money from the refinance to pay off the underlying debt and pay the sellers some money. If the refinance amount is not sufficient to cover the purchase amount, then you will want to ask the seller to carry a second position note secured to the property.
Why this works.....you have credit history by piggybacking on a seasoned entity and you are refinancing instead of getting a new loan. These two factors make it a lot easier to secure new financing.
Happy Hunting!!!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Hi, I am trying to understand the process of getting properties to rent from a bank owned property. From all the reading I have been doing, I am lost. I dont have the money to start the academy nor do I have any money for down payments and I dont have the resources that most have had in acquiring rental property. O, and my credit score below 550-is there any advice anyone can give me.
RBB
Wow, that was very interesting Dawn.
I see some commercial properties sitting on the market for a while and now wonder if this stratedgy will work on them.
thanks
Richie
Commercial bank owned properties do not work the same way. you cannot assume a Trust or Entity with these, however, you might be able to lease option it from them for a while. Commercial lenders are becoming more and more motivated to get rid of their properties.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
With your credit score and lack of down payment, you need to focus on a Fast Cash strategy such as bird dogging or doing assignment of contract. There are many discussion topics on the forum that cover those techniques. Please explore those topics to get an understanding of a method of starting your investment career. Don't focus on what you lack, focus on the positives and make it happen.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125