Help with a deal (first one)

[GotHope]

I work for my family’s business that has put the building up for sale.  My father would like to find an investor that will purchase the building and rent it back to him.  I have no ties to the company besides being an employee.  I currently rent residential properties and was looking at acquiring another one and decided maybe I should investigate more into this instead.

The building was appraised at $1,170,000.  I could purchase the building at 65% LTV and my father would sign a two year agreement stating he would pay rent at $6.50 per square foot on 15,000 square feet; however, how do I go about this?

I do not have the income level for such a purchase.  Would this be disregarded do to the two year agreement?  I would really like to help my family out as well as place this in my portfolio but I am not sure how to go about it.  Thank you for any help!!!

[DeNiroONeal]

For $tarters you should have an LLC that you are building business credit with.. If you don't know how to build biz credit (which is seperate from personal credit) then google/youtube it. Its very important...
Other than that he could pull out equity on the APT then give u the $ for the down payment and have a the bank or private lender cover the remaining 50% LTV which they should have no problem with if its a cash flow property. 

[dandkconsultants]

I think maybe you ought to see what a investment or private banker can do. This could be rather easy.

Value of prop from what you said $1,170,000
65% purcase price is $ 760,500
$6.50 x 15,000 = $97,500 x 2 = $195,000

Depending on market price a zero coupon treasury maybe 24-27% pur price. This repays the princpal over a 30 year period. This secures a loan outside of the property. You could take your income from your father and pay off the purc price of $760,000 in the future. To where there would be no lien needed. But possilby a loan on the treasury to cash out dad.

If that happens I'm not sure of market price on either a zero coupon or one with a fixed rate of return at this point but some investors use these as well. They accomplish a few things...

*They both pay off princpal in 30 years at a discount

*If you get one with a coupon a fixed rate of return could be put towards the loan interest    against the treasury to manage more costs...

*Frees up liens on property once loan is accomplished

It may just get a banker to say yes as well when alot are saying NO...
*Plus it also frees up future income cause the treasury liquidates the debt. This is great cause you would just pay taxes on the income made and not have a payment to make on the property.

Just another avenue to consider in your endeavor. It may make it to where you can enjoy owning this property I think.  Good Luck!~

[gornanalb84]

Hello Friend..
Real estate investment is crucial because it usually involves a substantial investment and a long-term one.that's refers to immovable property, such as land, and everything else that is permanently attached to it.
I want to share few steps which you should keep in mind .......
1.Figure out how much you can afford
2. Know your rights
3. Shop for a loan
4. Learn about home buying programs
5. Shop for a home
6. Make an offer
7. Get a home inspection
8. Shop for homeowners insurance
9. Sign paper
 

modified due to rules violation