Posted by cam on September 14, 2003 at 18:21:53:
Sorry, but you will not see any lender give you 90-95% on such a small commercial property even with perfect credit (assuming no seller held 2nd) Credit scores of 525-625 eliminate you from getting funding from every lender and banker I am aware of.
HELP!!! Commerical Lenders - Posted by Johnnie
Posted by Johnnie on September 14, 2003 at 13:00:26:
I am submitting an offer to a bank for a 3 unit REO property. The bottom unit was a deli but it is only zoned for office space. The bank will only accept a commercial loan for the property. I plan to convert the space back into an office, however, my experience is in residential. I need info in securing a commercial loan. I am self employed and have no problem with stating my income, however, my credit score is in the 525-625 range depending on the report. The list price is only $39,000 with outstanding business taxes.
Are there any commercial lenders able to give a 90-95% loan. Please contact ASAP
Re: HELP!!! Commerical Lenders - Posted by ROBIN
Posted by ROBIN on September 21, 2003 at 08:32:10:
I WORK WITH COMMERICAL LENDERS, VARIES TYPES SUCH AS BANKS, INSURANCE COMPANIES ETC. HERE ARE SOME THINGS TO KEEP IN MIND.
A) ALMOST ALL COMMERICAL LENDERS DO NOT GO BEYOND 80 TO 85% APPRAISED VALUE.
B) THE PROPERTY IS THE MAIN OBJECTIVE FOR THE LENDER. THE BORROWER IS ONLY SECONDARY. THEREFORE, IF YOUR CREDIT IS NOT GREAT, THAT IS NOT A DEAL CLOSER. WHEN I SUBMITT COMMERICAL LOAN PACKAGES, I ONLY PROVIDE TWO LINES OR SO ON THE BORROWER. THE REST IS ALL ON THE PROPERTY.
C)DEREK HAD SOME VERY GOOD SUGGESTIONS ON HOW TO GET MORE MONEY DOWN.
D) MAKE SURE WHOMEVER, IS SUBMITTING YOUR LOAN PACKAGE INCLUDES THE COST FOR THE NEW OBJECTIVE, AND THE RETURN. LENDERS NEED TO SEE A FORECAST. IF YOU CAN SHOW A PROFIT AND A STONG RENTAL AGREEMENT, IT MAY FLY.
GOOD LUCK,
ROBIN
Re: HELP!!! Commerical Lenders - Posted by Derek
Posted by Derek on September 18, 2003 at 13:07:52:
WOW! What a challange…
As a sugesstion, if you are not able to get cooperation from a lender, seek for potential clients which will desire to occupy space and negotiate with the bank by telling them you have a gauranteed client that will sign a one year lease…Yes! This will allow you to pay the bank and not hold debts or at least give you time to find a lender or investor…
You may want to go as far as bringing the client with you to the bank and all the deals go down in one place as reassurance…Investors also can be included in your venture as a way to help your situation and still make a profit while paying off the investor…Yes, always look at a WIN-WIN challange and both parties will get satisfaction…
If this has helped your venture, I’m always glad to hear from you anytime…Thank you
STAY ON FIRE!