OfflineHi DG family! This is my first post to the forum, please be patient if I ramble. I have a couple that wants to purchase a property but can't get financing due to no credit and his girlfriend makes $120K/year but has poor credit due to a previous bad investment.
The property is a previously zoned assisted care facility. 10 bdrm/5+ bath on a 2 acre lot with a pool. The property has potential to earn $20K+/mo. They plan on using the property as an assisted care facility.
The property is distressed and has been on the market for over a year. MLS lists it at $350K and the realtor thinks that they can get it for $250K or less.
Here's the question: The couple has $70K to put down and want to finance the remaining $280K. Does anyone know of an investor that would be willing to carry the $280K for financing. They want the $100K to use for rehab.
Thank you for listening and any suggestions would be appreciated. PM me for investor info or any other questions about the property. Kevin
Is it bank owned? If not, have you discussed owner financing? You might consider asking another investor to be an equity partner in the deal as opposed to just making a PM loan.
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maybe they could form a corporation and use corporate credit instead of their personal credit. They could also explore a govt grant or low interest govt loan for rehab purposes. A key element of them obtaining any kind of financing is going to be their business plan. While $20k/mo cash flow sounds impressive, what will it net after expenses? What will be the level of assistance provided? Will there be around the clock skilled medical personnel to assist with medication and other needs, meals provided yields food expense as well as staff expense, room cleaning, safety at the pool, insurance, taxes, utilities, as you know the list goes on. From a lender's perspective, I am seeing this as more financing for a specialized business rather than the acquisition of property to rent. If you look at it from the lender's perspective, is your decision to lend based more on the property or the business model? If things go south, do you want to be holding an apartment or an assisted living facility as your collateral? Just my opinion and I may be wrong. Seller owned or bank owned? Any chance the seller could carry any financing? What is the level of distress?
the first two posts here are spot on. Look for financing concepts "out of the box". BTW, I'd make an offer to the current owner between $150K and $200K if it need a $100K in rehab. Just a thought.
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