Bridge loan for value add property

[Sam B.]

Hi guys

I have a value add strip center I am looking to buy. Building is 8 years old and doesn't need repair. It's only 34% occupied and as a result NOI is basically 0 (current rents can only support property related expenses).

How do you finance something like this? I called a mortgage broker and she said they only lend on NOI, so I'm not sure if she isn't interested in doing business w me or maybe banks don't lend on properties like this. My feel is that there's gotta be a way, how do I go about this?

[Greg Dickerson]

Originally posted by @Sam B.:

Hi guys

I have a value add strip center I am looking to buy. Building is 8 years old and doesn't need repair. It's only 34% occupied and as a result NOI is basically 0 (current rents can only support property related expenses).

How do you finance something like this? I called a mortgage broker and she said they only lend on NOI, so I'm not sure if she isn't interested in doing business w me or maybe banks don't lend on properties like this. My feel is that there's gotta be a way, how do I go about this?

Every bank and every lender is different. A lot will depend on your financials and the down payment you can put up. You will need to put together a solid business plan and package the deal along with your financials to submit to the banks. These deals are typically financed by local or regional banks not commercial brokers.