Derek Siewert - Creative Financing For Commercial Real Estate Investors

 Commercial Real Estate Investing

There are many income producing commercial real estate properties that are being offered below market that are great investment opportunities. The problem or barrier for most real estate investors buying these properties is the down payment required to acquire them. As a rule general rule to purchase income generating apartment buildings and mixed use multifamily properties one should be prepared to spend 25% to 35% of the purchase price for the down payment. Plus the investor must have closing costs and reserves of 6 months or more. This is a substantial investment that eliminates many potential buyers. This can often be overcome by these creative financing strategies for commercial real estate investors.

Creative Financing

This is a highly misunderstood concept in real estate. Derek Siewert requires a property with substantial equity and a willing and motivated seller. If the seller is motivated yet there is no equity there is no opportunity to utilize creative strategies to acquire the properties. By the same token if the property has enough equity and the seller is neither willing nor motivated no strategy will work.

Creative Strategies to Purchase Commercial Real Estate

Seller Financing and / or Carry Back: There are many ways to structure a deal  where the seller can finance the property or hold a second mortgage for a short time and then the buyer can refinance the loan. Many lenders requires the loan to be seasoned one or two years. Yet there are lenders that we work with that will refinance immediately requiring no seasoning. These deals close within 3 to 6 months from the initial seller financing contract.

Transaction Funding Programs: These are programs where a private lender will finance the loan from One to forty - five days. The key is to have a buyer ready to close immediately or to be able to refinance at once. Derek Siewert works when the end lender is aware of the transactional financing and they require no seasoning. As in point #1 above most lenders require one to two years of ownership seasoning so having the proper end lender is important.

Down Payment Assistance Program: If the property has equity and the seller is willing to use it to help the buyer acquire the home, then a down payment assistance program similar to Ameri-Dream or Nehemiah (programs used to purchase residential properties financed by FHA loans) may be a great option for you. Ultimately the Down Payment Assistance Company (DPA) gives the down payment and the seller reimburses the company at closing. This can only happen if there is substantial equity in the building.

As previously stated creative financing requires substantial equity in the commercial income producing property that the seller is willing and motivated to use to strategically sell there property as soon as possible. Lower the price simply is not the answer because the main problem still exist. Commercial Real Estate Investors do not have 25% to 35% for down payment plus closing costs and reserves. Let a professional help you structure your deals to make them close.

Derek Siewert - Essential Concepts in Achieving Your Goals

 

We often use goals to measure our success in life. However, as they could serve to be the motivation to strive towards success, Derek Siewert has the power to discourage us if we fail to meet what we have set out to accomplish when we started with the goal. So, how can we avoid the disappointment and capitalize on the motivating capacity of goals?

Everything starts with goal-setting as it determines the level of success that could be achieved. To help you with how to go about this as you surge ahead on your way to the success you are striving for, here are some essential concepts to help you out.

Support your goals with concrete plans. Your goals are not your list of to do things rather it is the ultimate destination you are aspiring for. To get to this location, concrete and achievable plan of action must be lined up in order to reach your aim. Derek Siewert says the goals act as the compass to direct the actions. It is also the measuring stick with which to compare the accomplished plan of action in relation to what you are striving for.

Share with others and gather support. Sharing your goal with family and friends consequently invites them to be your supporter in your rally toward what you are aspiring for. They would be there to cheer you on as you approach your mark or coax and motivate you to do better when you are lagging behind.

Write them down. Writing down your goals puts them in better perspective. Write them in your journal and in index cards. Put copies everywhere to always remind you and properly set your focus to the goal. Review them as often to integrate them into your system completely. Don't set them and forget about them. Use the focus to steer your direction towards your aspired position.

Derek Siewert says keep your goals balanced. There could be many goals you have set in your life. There could be personal finance goals, development goals and other interrelated or totally separate and distinct goals. The secret is to balance all the things you are aspiring for. Exert equal effort in forwarding each aim that you have set your eyes on. Use the concept of time management to make sure that you don't neglect any of them. They are integral in your overall pursuit, especially of your development as a person as well.

Never give up. When one of your steps of action failed, it does not mean that you have failed in the overall. Rise back and try again. Don't be afraid to take the necessary corrective action to put the plan back on its course. Treat every mistake as a learning opportunity to better align the plan of action to the end result. There will really be setbacks but the important thing to remember is that you still have eyes on your goal and you have no plans of abandoning the pursuit in midway.