purchase + renovations
Posted 09 December 2004 - 10:19 PM
Posted 10 December 2004 - 09:50 PM
Posted 12 December 2004 - 02:37 PM
In your situation unless you are going to occupy the building with your own company, this strategy will not fly. I am assuming that the building is being purchased for either sale or rental.
If I were in your position, I would try to give as little as you can for the purchase so that the borrowing needed for the renovation is kept as low as possible. Maybe separate it into a junior lien loan. You probably do not want to borrow the whole amount at 90% ltv and having to pay a higher overall rate of interest.
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