Any commercial lenders for property in Oregon?

7 Replies

Thank you all in advance! So inspiring to read all the posts! We are stuck or maybe we are not? We are trying to finance an existing adult care home and our current commercial lender is offering 70% LTV roughly 6.5% 5 year fixed/25 yr amort. I am mostly hung up on the LTV because I really need all the cash in my account for security. The lender is saying we have no experience in the adult home care business and that is why the LTV is what it is and not higher, but we have other existing businesses (10+ years). To my understanding and experience, I know this loan is considered a small commercial loan (less than 500,000). Any advice? Should we continue to find another lender or does this seem reasonable? We have gone through residential lenders and have been rejected because of what the property is. Hind sight is always 20-20 but it never occurred to me that the lenders would just assume I would run the property as an adult foster home (I never indicted such). I think it is a great business and have no qualms running it so here we are.

@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!

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.

Hi, have you tried Columbia Credit Union? Scott Stohr is our contact there. Very good and local to the market.