Interested in purchasing real estate; not sure what loan type
I wasn’t 100% sure which forum to post this question in so I figured I’d give this one a try. I’m currently interested in a property that I found in my area but I’m not sure what loan I would need in order to finance it. The building contains two businesses on the ground floor and two apartments above those. I’m under the impression that I may need a commercial loan due to the nature of the building but I feel like the best route may be to find a private money lender to fund something like this. Is there any possibility of me obtaining more of a conventional loan to finance? Any input would be appreciated. Thanks in advance! Also, I know location says Cleveland but I’m actually about an hour East.
Mixed-use commercial loan.
@Muhammad Amawi can give you a better insight than I can.
Quote from @Caden Lucas:
I wasn’t 100% sure which forum to post this question in so I figured I’d give this one a try. I’m currently interested in a property that I found in my area but I’m not sure what loan I would need in order to finance it. The building contains two businesses on the ground floor and two apartments above those. I’m under the impression that I may need a commercial loan due to the nature of the building but I feel like the best route may be to find a private money lender to fund something like this. Is there any possibility of me obtaining more of a conventional loan to finance? Any input would be appreciated. Thanks in advance! Also, I know location says Cleveland but I’m actually about an hour East.
Hey Caden, It definitely sounds like some type of commercial loan would be necessary, however many products are available and could very a lot depending on your financial situation and details of the property. I would definitely talk to a great lender and they can really give you your best options. @Tristan Pearrow is here on PB and may be a great resource.
Typically a bank or a credit union would be the cheapest cost to you, they also usually are the hardest to get and take the most amount of time. I would explore that first and then if not a non bank commercial lender. It sounds like its a typical deal, its a quesion of cost of capital, Loan to value and how hard to get
Quote from @Nicholas Misch:
Quote from @Caden Lucas:
I wasn’t 100% sure which forum to post this question in so I figured I’d give this one a try. I’m currently interested in a property that I found in my area but I’m not sure what loan I would need in order to finance it. The building contains two businesses on the ground floor and two apartments above those. I’m under the impression that I may need a commercial loan due to the nature of the building but I feel like the best route may be to find a private money lender to fund something like this. Is there any possibility of me obtaining more of a conventional loan to finance? Any input would be appreciated. Thanks in advance! Also, I know location says Cleveland but I’m actually about an hour East.
Hey Caden, It definitely sounds like some type of commercial loan would be necessary, however many products are available and could very a lot depending on your financial situation and details of the property. I would definitely talk to a great lender and they can really give you your best options. @Tristan Pearrow is here on PB and may be a great resource.
Thanks Nicholas, Yes I'd be happy to help. Caden, if you want to reach out we can go over details and what loan would be the best fit.