Posted by Michael Morrongiello on August 31, 2002 at 22:53:15:
In Reply to: commercial notes posted by Nancy on August 22, 2002 at 12:58:51:
Nancy:
Under the BEST of circumstances most Note funders including ourselves (at Sunvest) will consider funding commerical Note deals in the 70% to up to 75% "ITV" investment to value range.... However a cash wash commercial property which would be considered a "special use" type property might not allow for that type of exposure, especially on a brand new unseasoned Note deal.If you can come in with at least 10% or preferably more down, and convince the property / Note seller to hold a good portion of his / her sales price back in the form of a subordinate 2nd lien mortgage, then perhaps a good well structured 1st lien in the 60% LTV range can be structured so that it can be quickly sold (even at closing) to generate CASH to these sellers.
They then would Retain the 2nd lien for income.
To your success,
Michael Morrongiello
MikeM@sunvestinc.com
www.sunvestinc.com