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Commercial Real Estate Investment/Questions Answered by Expert Terrence Cullen
| Subject | Date Asked |
| getting loan to consolidate debt | 1/6/2012 |
| Q: I have two 2-family houses I bought for investment and income supplementation, owned under an LLC in ... A: In actuality the idea of not having all your eggs in one basket is a solid concept with banks going ... | |
| A "Bad" Mortgage? | 10/18/2011 |
| Q: I'm taking an introductory economics class, and I was wondering if you could clarify something for ... A: A bad mortgage is one whose either the underwriting was flawed due to an improper appraisal, the ... | |
| Mortgage Loan Call | 3/18/2011 |
| Q: My mortgage company ( a regional bank) called one of our investment property loans due last year and ... A: Possibly your credit standing has changed since you paid off the last loan. I would attempt to refi ... | |
| Financing | 12/17/2010 |
| Q: The sellers of an apartment complex are asking $5.7 million dollars on an assumable loan. I was ... A: I do not have the current cap rates for Greenville, SC, but based on the NOI I see a very viable ... | |
| Mandatory 3-year mortgage renewals | 12/15/2010 |
| Q: My evil mortgage company "renews" my commercial mortgage every three years. The first three years ... A: The best bet are credit unions. If the value of the property is 50% of the value and you want to do ... | |
| Financing | 12/13/2010 |
| Q: The sellers of an apartment complex are asking $5.7 million dollars on an assumable loan. I was ... A: Leon, What is the asking price? What is the NOI? What are the terms of the note. Is it locked or ... | |
| Mandatory 3-year mortgage renewals | 12/4/2010 |
| Q: My evil mortgage company "renews" my commercial mortgage every three years. The first three years ... A: Banks can set loan terms anyway that suits them. Usually, banks do 5 year balloons for larger ... | |
| Looking to buy Commerical Property for Cashflow | 8/15/2010 |
| Q: I would like to buy a commerical property somehow. I have decent credit, around 700. I have about ... A: Most investment groups will promise between 12-20%, so your request for 10k flow is not ... | |
| Finance Commercial Real Estate | 1/29/2010 |
| Q: I am not 100% seasoned in commercial real estate and had some questions regarding the financing. To ... A: If you had to pay the whole amount off in 5 years, the debt service would cause you to lose money ... | |
| Finance Commercial Real Estate | 1/29/2010 |
| Q: I am not 100% seasoned in commercial real estate and had some questions regarding the financing. To ... A: In this market the usual is 25% down, but with no experience banks make ask for more. The interest ... | |
| Refinance of office condo | 11/10/2009 |
| Q: I am considering refinancing my office condo. I opened a business about a year ago but was forced to ... A: You don't qualify for a short sale, but that doesn't mean you can't sell it below value. It only ... | |
| Refinance of office condo | 11/9/2009 |
| Q: I am considering refinancing my office condo. I opened a business about a year ago but was forced to ... A: Your current lender has been very accommodating concerning the economic climate. Without having a ... | |
| buying property to be converted into a bar | 5/20/2009 |
| Q: i want to buy property in which i can live atop of a store front or an former bar that i can convert ... A: In order to accomplish your goals you will need to research where you want to open your place. The ... | |
| buss VS comm'l loans | 5/15/2009 |
| Q: terrence, can you answer these questions for me......? what's the difference between business loans ... A: Neither do 100. Business loans are based on the business and personal balance sheet with the ... | |
| 100% seller financing | 5/13/2009 |
| Q: terrence, please help us find a miracle. we need to find 100% seller financing income producing prty ... A: Darlene, I respect your intentions, but I don't see this happening. There are only two ways that ... | |
| novice investors | 3/25/2009 |
| Q: where do i begin. 1st time out. novice wannabees. WHERE do i find "below market value" apart bldgs? ... A: Darlene, I am sorry that I took so long to respond but I wanted to carefully consider my response. ... | |
| novice investors | 3/22/2009 |
| Q: can you help us... with the market at on all time low, now is the time to grab the deals. but we ... A: Reading all the books is a good start, but having no cash or experience makes it difficult for you ... | |
| CPI as lease increase | 3/11/2009 |
| Q: Is there danger in using 100% of CPI as rent increase? Whould the rent of a comercial building go ... A: The country is in recession and inflation could shoot the CPI to record numbers. I think there ... | |
| positive cash flow | 3/4/2009 |
| Q: i can't figure out how to make a profit on commercial prpty like multifamily or apt bldgs. how do i ... A: This isn't a viable economic climate for flipping unless you buy a property in foreclosure. The ... | |
| time for change?.. lease?, lease w/option? owner finance-vs-? | 1/27/2009 |
| Q: I am grateful for your attention and value the objective and educated opinion you can lend. I face a ... A: Steve, The terms you describe for an owner occupied space are very appealing (option for a ... | |
| Refinance duplex office building | 1/22/2009 |
| Q: So much has changed in such a short period of time. In 2006 Wells Fargo offered a no closing cost ... A: The institutions that are lending are facing little competition. They are offering very little or no ... | |
| Interest Reserve | 1/21/2009 |
| Q: I was wondering exactly what Interest Reserve is and how to build it up? I have heard my supervisor ... A: Usually in the apartment, lending business there is a replacement reserve fund of 100 to 500 per ... | |
| Assumable Financing | 10/17/2008 |
| Q: I just requested info on an investment property with 80 units. Seller says assumable funding at 6%. ... A: Ray, Cash is king these days and whoever you bring in will have plenty of options for his money. ... | |
| breaking lease | 10/17/2008 |
| Q: I'm on the board of a nonprofit agency that depends solely on donations. We have an office in ... A: Unless someone has signed personally on the lease, the landlord will have a difficult time suing ... | |
| Investor information for gas station/c-store properties | 10/6/2008 |
| Q: I would like to find good published financial data for c-store investors (cap rates, ratios, etc). ... A: Linda, There are several sources of information concerning markets that I have used and continue ... | |
| Buying Land | 9/26/2008 |
| Q: I am interested in learning if one can make money in real estate by just buying land in different ... A: The old saying is that land is the best investment since they are making any more of it. I agree ... | |
| Commercial Real Estate fair market interest rates | 9/24/2008 |
| Q: I am purchasing(rescuing a colleague) a church for $1,050,000. What is a fair market interest rate ... A: Harriette, Are you are "rescuing a colleague" or making a business loan? Are you purchasing an ... | |
| Buying This Commercial Property. | 9/22/2008 |
| Q: The building is on the market for 1,7 m with a six month balloon, The bank is owed $338.000 at 7 1/2 ... A: Kim, I need to clarify your question a bit. Can I look at the appraisal, so I can find out the ... | |
| Property Management Fees | 8/20/2008 |
| Q: I am developing a 500,000 sf power and entertainment center in Los Angeles. I am looking at ... A: Usually management contracts for commercial deals range anywhere from 2% to 6% with the median ... | |
| Convenience Store | 7/16/2008 |
| Q: Can you tell me the best avenue to take to obtain a refi for a convenience store? I need a cash ... A: John, The loan terms you have currently are consistent with the market but if you want borrow ... | |
| VA loan for commercial property | 4/21/2008 |
| Q: I want to purchase a campground with cabins and have my primary home on the property, can I use my ... A: I hope that your incredibly ungrateful nature is a great asset. VA loans are residential lending ... | |
| real estate | 4/15/2008 |
| Q: i held my 30 unit building for 10 years and planned to sell or refinance so i could reinvest and buy ... A: Rob, Areas that I would explore would depend on my motivation. Florida has plenty of bargains that ... | |
| real estate | 4/5/2008 |
| Q: i held my 30 unit building for 10 years and planned to sell or refinance so i could reinvest and buy ... A: There is opportunities out there. The market is definitely shaping up as a buyer's market. Fast ... | |
| customary closing costs | 3/27/2008 |
| Q: Terrence, I'm formally a residential agent but do one or two commercial deals per year. I'm trying ... A: The 3% number is on the high end. The origination fee on that size loan is usually 1/2 and the ... | |
| real estate financing | 2/18/2008 |
| Q: I am in the process of making a deal for a single tanent retail property valued at about 925K. My ... A: The advantage of the single asset entity is flexibility for refinancing, adding supplemental debt, ... | |
| commercial finance | 12/26/2007 |
| Q: I have a question about commercial mortgages. What is the usual commission percentage given to a ... A: The financing fee is usually at most 1%. The borrower has to sign an agreement for you to collect ... | |
| commercial finance | 12/24/2007 |
| Q: I have a question about commercial mortgages. What is the usual commission percentage given to a ... A: It depends usually on the size of the deal. You used to be able to get some premium if the rates ... | |
| Good real estate magazine | 12/6/2007 |
| Q: Do you know of good real estate magazines? (not listings, more like articles, etc.).Considering this ... A: Commercial Property News, Realshare, Multihousing News, Apartment Finace Today, are all good ... | |
| Commercial real estate loan | 11/9/2007 |
| Q: I am looking to buy a small strip center located in Illinois. Here is the information assuming ... A: Where is the property located exactly? The loan programs available in larger MSAs are usually better ... | |
| finder's fee | 10/18/2007 |
| Q: A fellow identified property for housing development..I understand finder's fees are usual..are ... A: Typical response from somebody who wants something for nothing. Have you ever gotten or paid a ... | |
| Financing deals | 9/27/2007 |
| Q: I have a dillema here. As of right now I am 24 years old and I buy distressed single family homes, ... A: The banks or lending institution will still look up the principals of the company's credit. In three ... | |
| hard money | 8/22/2007 |
| Q: TC, Do you think using hard money for a first, including fix up monies and owner taking a second, ... A: It is creative, but also risky. Owners don't usually take seconds unless they think that they sold ... | |
| Rental Propery purchase | 7/28/2007 |
| Q: I am currently in the process of purchasing a multi-unit dwelling. I am curious as to the best way ... A: Where is the property? How many units are we talking about? Because a 5 unit property has more ... | |
| creative buying of commercial RE????? | 7/27/2007 |
| Q: I want to buy a 38-unit apt bldg in brooklyn for 3.4mil, there is a mortgage of 1.9 on the bldg now. ... A: You have to be a member of the owning entity to refi the loan. A transfer of shares may be possible ... | |
| commission question | 7/18/2007 |
| Q: What is the usual commission charged on a commercial mortgage? I've always heard that it's usually 2 ... A: Commercial financing is rarely above 1 point. If you are lending directly you might get a premium in ... | |
| question about commission | 6/26/2007 |
| Q: I just have a question about commercial mortgage loan officers. When they complete a deal, what is ... A: Most commercial loan officers get paid a negotiated point with some sort of salary pay back. Some ... | |
| prequalifying an LLC; third party collateral | 6/22/2007 |
| Q: Cullen, I would like to make some offers on commercial real estate thru a newly-formed LLC and it ... A: If you plan on a purchase of a commercial property of a value around a million or so, you should ... | |
| investment property purchase | 6/14/2007 |
| Q: I came across an occupied investment property that sounds like a good deal. This is my first time ... A: How much money is your partner contributing? Normally you would need 25% down with 1-3% for soft ... | |
| commercial investment | 4/30/2007 |
| Q: I live in the UK {united kingdom } and I am thinking of buying a private property in Canada and ... A: I am not very well versed on Canadian law. I am not positive but I don't think you can actually own ... | |
| Investment Property | 3/19/2007 |
| Q: My husband and I are looking to invest in a commercial building that is being converted into ... A: The loan will probably be a recourse loan. Which means it will be securitized by other holdings. ... | |
| financing for new business | 1/15/2007 |
| Q: I am looking into starting a bowling alley and was wondering how to go about finding investors. I am ... A: What is your contribution to the deal besides the idea? Unfortunately, thinking that a bowling ... | |
| financing a commercial property | 11/26/2006 |
| Q: We are a small business, in operation for 15 years part-time, 2 years full-time. We have a currently ... A: The loan to value for a commercial property without incurring higher rates (by using mezz debt or a ... | |
| investing with a partner | 10/29/2006 |
| Q: We have a friend who is successful in real estate investing/sales in California. He is interested in ... A: If he is willing to sign the note and you have references as a management company you should be able ... | |
| lease or buy | 10/22/2006 |
| Q: In the intermediate term (5 yrs.), is it better to put 50k down on an office worth $200k, thereby ... A: It depends on some many factors not addressed here. For instance, what is the rate and what your ... | |
| Commercial Property Purchase Questions | 9/13/2006 |
| Q: I have found a piece of commercial property that I would like to purchase as an investment or for a ... A: John, if there is a broker on the deal he might have some answers. Then try the seller. Some of ... | |
| Commercial Real Estate | 6/6/2006 |
| Q: "Hi, I am interested in purchasing large comercial income properties without using my owm money. I ... A: If you have good credit, large schedule of real estate owned, or a large net worth your signature ... | |
| Creative financing | 3/9/2006 |
| Q: I have a certain debt service amount that I can pay out each month to maintain an investment ... A: The simple answer is do an interest only loan. Another way is to decrease reserves. What interest ... | |
Commercial Real Estate Investment
Answers by Expert:
Terrence Cullen
Top Expert on this page
Expertise
Questions concerning financing of commercial properties.
Experience
Fannie, Freddie, FHA, and conduit versed lender for over a decade.
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