Commercial lenders- established owner occupied business purchase

10 Replies

I am buying a commercial property to lease to my established business. Looking for lenders that might lock in longer than 5 years which is what my own local bank will do. If anyone has any commercial lender suggestions, please let me know!   I am looking for competitive rates but longer term.

Originally posted by @Marie McClanahan :

I am buying a commercial property to lease to my established business. Looking for lenders that might lock in longer than 5 years which is what my own local bank will do. If anyone has any commercial lender suggestions, please let me know!   I am looking for competitive rates but longer term.

More questions to answer

What type of property is it?  Mixed use?  Warehouse?  Retail?  Gas station with pumps (just kidding)? What's the approximate value?  Is it in a city or would it be considered rural?

30 year fixed is available depending on the answers to the questions above, guarantor's credit (must be above 650) and the answer to @Jared Rine 's questions.

 

City, mixed use building- warehouse with retail front. Close to interstate.  Excellent credit. 15 year old business/SCorp could be guarantee, or other real estate.  


I am very keen on competitive low rate locked in.  Needs rehab/draws, total all in around 600-650k after rehab. 

@Marie McClanahan ...You might want to go with your bank and/or call around other local banks/CU's close to the property, especially if your bank relationship will give you the rehab/draw money. What you're looking for doesn't exist especially for that small of a loan amount, for a lender to provide the rehab funds and also a long term fixed rate. If you really need the rehab funds, for improvements to the building, you'd need to likely get a bridge loan. And then once it's stabilized with your business, you'd probably be able to obtain upwards of a 30 year fixed loan (yes they exist), but it's definitely not going to 'feel' like a low interest rate. If the LTV is sound and you're solid, you'd probably be in the high 5's to 6's.

Just my $0.02