Posted by Del-Ohio on September 15, 2003 at 23:37:47:
When you come to that point you find a commercial lender. Banks will always loan money on good deals that are profitable, if the borrower has decent credit and a good track record.
Commercial loans are generally made at 80% of appraised value or purchase price, whichever is less. The down payment needs to come from somewhere else.
Ours comes from equity in other properties. If you play the game right and develop a lot of equity in properties you can get banks to use this for a down payment.
Other options that we have used and continue to do on occassion. Owner carries the down payment. Most banke want you to have at least 5-10% of the down.
The bigger you get the more banks want to loan you money if you are profitable and keep a good credit record. But you have to quit quit playing the games of trying to fit commercial ventures into programs designed to for residential lending. Its a bit like trying to fit a round peg into a square hole.
Once you get there ask the question again, there are a lot of people on this board that can help lead you throgh the maze.
If you want to start checking out the possibilities now, check with some local banks, talk to a commercial loan officer, ask them what their criteria are. Will they use equity as a down payment? Interview a couple bankers and get a feeling for the differences. Finding an agressive commercial lender will be your most valuable assett when you really want to push growth and expansion.