Archive for monthly income
Here are 2 ways you can start profiting RIGHT NOW
from Commercial Short Sales -
Flip apartment foreclosures for short-term profit. You can
do this without buying the property because you’re actually
sandwiched between the buyers & the seller.
This is perfect for no money down deals. It’s also a
great strategy if you have bad credit.
Another way to profit from commercial foreclosures
is to acquire the distressed property for long-term growth.
This is also a way to create massive monthly income.
Apartment foreclosures are even easier to buy than residential
foreclosures, which is something very few realize.
Banks are beginning to get inundated with commercial property
that is in default and they want to get rid of it before they have
to take it back.
These means opportunity for savvy investors.
Stay tuned because I have a lot more to share with you soon!
Warm Regards,
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment foreclosures , bad credit , Commercial Foreclosures , Commercial short sale , distressed property , Karen Hanover , monthly income , No Money Down
In most loans you deal with something known as the “Loan To Value”
which is referred to as LTV.
In commercial real estate investing you do too, but there’s also
something else that commercial lenders consider and that’s
“Debt Coverage Ratio” which is referred to as DCR.
A commercial lender will calculate the LTV and DCR on a
property and often loan the lesser of the two.
For example, let’s say you had a property worth $100K.
If a lender is willing to loan 80% of the property value, then
that’s 80% loan to value. You would need to come up with another
20%, or $20K. That’s how LTV works.
Now let’s talk about the “Debt Coverage Ratio”, or DCR. With
commercial real estate, a lender wants to see MORE income
being generated than is necessary to fully pay the monthly
mortgage payments on the underlying commercial financing.
Why?
Because if your property is generating say $80K a year in
monthly income, and your underlying mortgage payment
adds up to $80K a year, you don’t have any room for vacancies
or other things that might require cash.
So the commercial lender wants to see often 125% of the
payment owed being generated in income from the property.
That’s one of the reasons why it’s so important to be able to
maximize the amount of monthly income an apartment
can generate.
When investing in apartment foreclosures or commercial
short sales, you can zero in on properties where you know
you can increase the amount of income being generated by
doing improvements or lowering the vacancy rate.
That will also increase the value of the property and that’s
where the fun really begins!
I’ll share more with you soon…
Warm Regards,
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment foreclosures , commercial financing , commercial lender , commercial real estate lenders , commercial short sales , DCR , Debt Coverage Ratio , Karen Hanover , Loan To Value , LTV , monthly income
