Funding for a commercial deal

[Todd Bayer]

Hello everyone! I currently own (through my corporation) SFRs that I rent out. I also own a triplex that I rent out. One of these SFRs is my office. The loans on these properties are in the names of my parents and my wife and I. All properties have been quit-claimed to the corporation. I want to start buying small apartment complexes (5-20 units). Is there any type of loan that would be secured by my SFRs where I would only have to make one payment for all of them and I would get cash out of my equity to fund a down payment on a commercial property? I heard someone mention a blanket loan, but where would I find such a program? Thank you for your help, I look forward to moving my business into commercial real estate.

[Darryl Dahlen]

Todd, if you are cashing out equity and not re-investing the money back into the property it doesn't really matter to a lender what you are using the money for. The bottom line is you are increasing their risk by increasing the overall loan to value. I don't know if that is a deal killer, but I suspect it will be.

That being said, I have a couple hard money lenders I can pass on to you to call, and one conventional lender. They do blanket loans and have a good reputation.

If you want conventional financing, I think you need to smile and dial some credit unions and portfolio banks. They would most likely want you to move all of your accounts with them, but that's normal nowadays.

Email me if you want the contact info of the lenders I mentioned.