@Ellizabeth Lee A good friend of mine does commercial lending in most states and is based in Oregon. I bet he can find something that will be a good fit for you. Send me a PM if you want his contact info!
You might try an SBA lender for a higher LTV. But I think your lack of experience might be an issue. Adult care is a highly regulated business.
Hi Elizabeth. Usually a maximum LTV of 70% or 75% is common in the commercial/investor property segment at a non-bank lender. It is also not surprising that typical residential lenders would stay away from this type of property as well due to the commercial use aspect. Often times, adult care homes are modified with ramps, railings, and other special safety equipment to cater to the needs of the tenants. These modifications hinder the ability of the lender to easily sell it as a residential home if they were to have to take the property back. The home would have to be cured back to be used as a residence and this would cost the lender money. I would be happy to speak with you in more detail if you would like.
Are you buying this with a new entity? Have you tried to obtain an unsecured line of credit with your new business in addition to your loan? What about a refi of the equipment? There may be some other nontraditional ways to come up with the capital. Happy to brainstorm if you would like on some ideas to get the cash you need.
Anything non vanilla is very high risk for a lender because if the loan defaults and they have to take it back it is very hard to sell and re-purpose.
Your terms do not seem that bad for what it is. If you do not want to use up all of your cash then you might want to bring in a partner with some capital to spread the risk around.
I think you just need to find the right lender. Good luck.
Hi, have you tried Columbia Credit Union? Scott Stohr is our contact there. Very good and local to the market.