If you own property, you probably know just how hard it is to get a contract closed, especially if you are an agent, and not the buyer. There are so many lender requirements these days that it makes it very difficult to get a property closed. And if time is of the essence in your contract, then you must make sure to push and push on the lender to get the deal closed.
Currently, I am still working the 5 units that we have under contract here in Belton, TX. We have a solid contract, and have just decided on how to structure the financing, and how to convey title. So this morning, I will be taking the loan application back to the lender for approval. I am working with an investor that has some good loose cash, strong income, no debt, and fantastic credit. This type of person is a rare gem out there today. Most people have bad credit, no cash, and no income.
So the process should be quick and painless for us on this deal. We are going to be doing a typical commercial loan, hopefully 20 year amortization, 5 year balloon, 25% down (although I think my investor is going to put down 40%) with an interest rate of around 6-7%. So he is setting himself up for great cash flow on these properties, and if he needs to sell out at some point, he will be able to do so.
So for me, I just need to get the application to the lender, push to get the appraisal in, finish getting the properties inspected, and work with the title company to ensure the correct title work will be done. I have already sent copies of the surveys to the lender, so barring any unforeseen circumstances, we should be able to close this property by the end of the month.
If you have comments or questions, please leave them below.