Commercial Real Estate Loan Under 1 Million?

Question

Okay so I am looking to buy a piece of property that is far below 1 Million dollars (need about 50,000 on a property worth 281,000) . I can't qualify for FHA because it is under 1 million dollars and I cannot get a conventional loan because this building is over 5 units (apartment building) . Do I have any actual options here?

Dawn Brown · Answer

Message me and let's see your scenario!  I may be able to refer you to someone.

Ryan O'Mara · Answer

Is it stabilized?  Does it need rehab?  Why is the price so low?

If it needs to be stabilized or rehabbed then you're looking at hard money loans.  And the lender will want to see that you have good reserves and experience with these types of properties.   But yes you have options.

If all you need is acquisition funding then this would be too small a loan for most lenders since PP is $50k and LTV would be no higher than 75%.  Talk to smaller local banks.

Percy N. · Answer

@Brooke Taylor, talk to a local bank that does portfolio lending.

They may even offer a commercial LOC, which you can may off fast and increase IRR.

Kerry Mertz · Answer

Check out http://www.scotsmanguide.com/ for some options.

Ronald Rohde · Answer

Plenty of banks will lend commercial under $1m, or try HML and put 30-50% down

Michael Le · Answer

You need to go and find some local banks who have an appetite for that type of property in that area. It will take some leg work and building of relationships.