All Topics / Help Needed! / frustrated
i have 20grand deposit for a commercial property that has 3 shops/tenants in it. my offer and exceptance has been excepted for 50grand for the whole lot.currently the 2 shops are bringing 600 bucks a month.(a local wants to rent out the third shop which would bump up the total to 850p/m.now the banks will not lend me the remaining 30 grand to purchase.my repayments work out roughly to be a little over 200 bucks p/m so obvoiusly this is positive geared.the mortgage broker says the banks dont like the location population of 500 people.now looking at these small places the men work on the farms and the wives need an oppurtunity in which they open a shopfront.perfect example is this both tenants are ladies hairdresser/vet.these tenants said ther not going anywhere and also the locals would be upset if they did.so i suppose i need to be proactive and approach banks differently.im not working at present as i have positive cashflow from 3 commercial properties.now have hit a brick wall like this. i am still trying to purchase this property any ideas.the boy
Hi beerboy
Why not give the vendor the 20 grand deposit and ask him or her to give you a first mortgage on the remaining 30 grand. If they don’t need the 30 grand immediately they might like the idead of getting 7% or so on their money. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Can you try another broker ? My experience tell me different broker has different approach & access to lender. If you can show them written lease agreement with the tenants , I am sure they will consider more seriously. If the lease agreement is not there, ask the vendor to get it done .
Good luck !
Nichelben
You must be logged in to reply to this topic. If you don't have an account, you can register here.