Loan for commercial beach house
|Posted by: William Shield Mar 24 2004, 02:01 PM|
|I’m am currently in the process of researching an array of beach houses in a fairly under-developed area. I believe this area has a lot of potential and I’d like to purchase at least one house to rent out. Unfortuntely, I have hardly any cash on hand for a down payment. I don’t even think what I have would even scratch the surface of what would be required. Is there anyway I can still obtain a loan to make this work out?|
To be sure I am clearly defining my goals, I would like to purchase a beach house (as a business venture) to rent to vacationers, etc. The area also has the potential to see great increases in the value of the real estate.
|Posted by: loanuniverse Mar 24 2004, 10:03 PM|
|Is there anyway I can still obtain a loan to make this work out?|
Not with no down payment from a mainstream commercial lender. Sorry, but it is not going to happen.
On the other hand…..
You could try a lender that is not a commercial bank. Or you could try to get partial financing from the seller.
The area also has the potential to see great increases in the value of the real estate.
This is great for the investor, but the lender will not see any of the potential increase. It is all about the repayment and the value of the collateral today.