96214 Resource 78777 78860 78860 1122602297048 1136757341370 Controlled Commercial Loans Where the Seller is Giving the Buyer Credits

The Sales Price of a Commercial Property May Not Be the Sales Price

Let's say a commercial mortgage lender will make commercial loans up to 80% of the sales price.&nbsp; What if the seller of the commercial property and the buyer agree as follows:&nbsp; &quot;The sales price of this commercial property is $1,000,000 but the seller will give the buyer $100,000 credit towards the purchase price because the roof is old and in need of replacement.&quot;&nbsp; <br /><br />Can the buyer of this commercial property obtain a new commercial loan of $800,000?&nbsp; After all, the purchase price is $1,000,000 and 80% of $1,000,000 is $800,000.&nbsp; The new commercial loan is 80% loan-to-value, right?<br /><br />No-no-no!&nbsp; These credits for deferred maintenance on a commercial property are just smoke and mirrors.&nbsp; &quot;I'll sell you my commercial property for $1 million but you only have to give me $900,000.&quot;&nbsp; Helloooo?&nbsp; What is the real purchase price?&nbsp; Nine hundred thousand dollars, right?&nbsp; <br /><br />A loan of 80% LTV on a $900,000 purchase price is just $720,000.&nbsp; Don't get fooled by credits for deferred maintenance.&nbsp; <br /><br />You can find the commercial mortgage rates of hundreds of commercial lenders on C-Loans.com.<br /> 9 application/xml false commercial construction lender commercial construction loan commercial financing commercial loan commercial mortgage commercial real estate loan mezzanine lender mezzanine loan preferred equity Find the Commercial Loan Rates of Hundreds of Commercial Mortgage Lenders http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322) 71.50.240.39 71.50.240.39 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web