Singing Pig

Having built up a significant reidential portfolio I want to venture into Commercial as it is more likely you can get 100% funding/cash back etc. plus you have a longer tenancy and generally less hassles.

Hi,

Tigerwood,

Drop me an email at deals@property-investment-deals.com, have a commercial deal just come in - all tenanted on minimum of 10 year leases.

Congrats on the Masters btw.

 

 

Tiger,

I am interested in your statement about 100% funding. I always thought it was 70-80% max.

Care to expand on that?

Thanks

Russell

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Property Innovations,

I am researching it at the moment, but have heard that peole will lend on valuation rather than purchase price for example (I am actually doing this at the mo).

Equally, lenders will look at the tenant an the deal rather than just the serviceability like with resi. Also if you have other property they can take 2nd charges on them (not necessarily remortgaing them)

There seem to be a few options but as I say I am still invesitigating. Where there's a will, there's a way

TigerWood

HI TIGER,

I would like to hear from you in regards to your formula or who you are using to raise 100% financing for commercial property .

The baron

You can get 100% funding normally only with additional security over another property. The exception is if you are buying a building with a blue chip tenant. However, you just won't get one with a rent that will cover mortgage repayments because the yields on top quality commercial investments are really low. It is still possible to get yields around 9 and 10% if you go for riskier locations with riskier tenants but the lender will be reluctant to go to higher than 80% LTV unless additional security is being provided.

I recently had a deal myself with 100% funding so it is possible.

Good luck

Hi Chris,

Useful advice but who do you use for raising funds?


THE BARON