I'm new to this board. I'm looking for someone who understands the intricacies of obtaining a loan for a commercial/residential property.

The property is a storefront with apartment upstairs. I currently occupy both units.

I can get pretty creative with the financing from holding a second up to 20% to offering cash back at closing in the form of prepaid rent if necessary.

Any brokers out there familiar with these types of transactions? I just need to know a few basics before I begin looking for a buyer.

Bob Enk

[email protected]
314-752-3276

Originally posted by "bobenk":
I'm new to this board. I'm looking for someone who understands the intricacies of obtaining a loan for a commercial/residential property.

The property is a storefront with apartment upstairs. I currently occupy both units.

I can get pretty creative with the financing from holding a second up to 20% to offering cash back at closing in the form of prepaid rent if necessary.

Any brokers out there familiar with these types of transactions? I just need to know a few basics before I begin looking for a buyer.

Bob Enk

[email protected]
314-752-3276

Bob,
You have what's called a "mixed use" property, it's even MORE complicated than commercial & up there with the development/subdivision wrap-around mortgages I put together between developers/sellers/backers/& buyers;

Have the toughest in the world on my plate right now...mixed Use Horse Barn Construction to Perm w/22oosq.ft of living quarters in the same structure...yes, it was a nightmare.

If I can get IT done, Your place will be a walk in the park.

1-Know Your buyer/borrower; start off w/a credit report, financial statement, & their business plan, unless they're buying Your going business(?)
2-Find out their business ownership/management experience, nobody wants to set someone else up for failure
3-IF they don't "need" the apartment, You should advertise & secure a tenant 4 them, w/1st/Last/& security, so that potential "problem" w/both future lender & appraisal is already dealt with (read=documented INSTANT Cash flow, more appealing to buyer, & Lender), preferably w/a nice LONG lease (say 2yrs w/a 1 year extention option)
4-Holding a Seller Second makes this a VERY "do-able" transaction, just need to make sure borrower
A-Has great credit
B-Good Reserves
C-Proven Track Record in Business (4 self or others)
D-Realistic Business Plan
E-The Guaranteed ability 2 make the payments

If they have their act together, You'll know who they are...
Let me know if I can be of further help, I've arranged financing on over 200 commercial transactions, & over 50 mixed use subject properties

5-& Very Most Importantly....
Don't be afraid to "owner finance"..(especially @ 10-15%) w/a balloon in 12/18/24 months, & amortize for 10-15 years max; lenders appreciate/respect when a seller was realistic w/the sales conditions.
Getting a RE-Fi for commercial property is MUCH easier than purchase money, and even selling Your seller held 1st (&2nd) are followup options
If this helped, don't hesitate, give me a call(or email), I'll help all I can, including financing the purchaser;

(386)365-1767