If you have copies of the old Phase I and Phase II Environmental reports, include them as well. They will not be current, but could nonetheless help the lender in knowing when the property was last judged to be free from hazards.
A commercial property lease is a complicated thing. Make sure a solicitor you trust is part of your team. It will cost a bit but it’s worth it to avoid the pitfalls that can be buried in complicated legal mumbo jumbo of a standard commercial property lease. Do your homework and get out there and be a smart and savvy commercial property customer. The time and energy you put into your preparations will pay you back over and over again when you have settled into the perfect commercial property for your business. Provided by the WebWarehouse team. Give Simon or Alan a call on 0845 603 8883 to discuss any details further.
The online option enables you to look and choose the best. There are many insurance companies that offer a comprehensive cover which is all encompassing. It incorporates various insurance policies to provide a landlord peace of mind. It also saves them of all kinds of hassles.
Down the road, I’ll teach students how to own rental properties without stressing out. You do it by building five years’ worth of reserves. Flipping properties is a way to create cash reserves first.
Loan to values, as in the difference between what a property is worth vs. what is owed, is another key ratio to reduce risk for banks. The normal high side for the typical owner occupied property, such as office, industrial or retail, is 75%/80% on a refinance. This is being dropped pretty much across the board to a max of 70%. Special purpose properties, such as, restaurants, automotive, hotels, daycares, etc are taking the brunt of it, as many lenders will not lend beyond 60% loan to value. Many lender have simple stopped lending on these properties all together.
In addition, less obvious underwriting standards, such as increasing vacancy and management fees have a direct impact on net income. Many lenders are raising these underwriting guideline from 3% to 7%. In areas like Phoenix for example, some underwriters are using market vacancy vs. a the standard 5%, which can seriously effect a transaction if market vacancy are, for example 12%. Keep in mind that this vacancy will be factored on to the deal, even if the subject property is 100% occupied at the time of the refinance.
What’s Out There. Interest rates, terms and the costs of closing on a home mortgage all play a role in helping you to obtain a loan. The more affordable these are, the more likely you are to obtain the home loan you want. Comparing several companies can help you to get the lowest costing loan specific to your needs.