Tried searching unsuccessfully, if there are articles you could point me to I'd appreciate it much.
I have a potential deal coming my way, but am hesitant to work on it much without understanding the loan process better.
The property is an 8-Plex so I know I need to get a business loan but that's everything I know.
I have no RE experience, very good credit, and enough cash reserves to cover down pay with 10% of purchase price left over.
Where do I start the lending process?
You probably need to be searching "commercial lending", not "business loans". There's a ton of info on BP (use the search feature at the top of the page)
Basically, you need to be aware that you'll need a hefty downpayment - probably 25%, maybe 20%. The loans are rarely for a 30 year term, more often a 20 yr amortization with a ballon payment due in 5-10 years.
Do a little reading here, then research some local banks- call and ask if they do small commercial loans (they will consider anything under 1 million "small" so don't be shocked by that, lol!). You may have to make a lot of calls before you find a lender. If you know anyone (through your local real estate investor club or something) that has larger properties, ask them where they get loans.
Maybe post the details of the deal on BP to get some feedback on whether it's a good enough deal to pursue before you go to all this trouble :)
@Jean Bolger nailed it. Also attend your local REIA and ask who is lending on these types of deals. I just had to get one and had to call about 20 - 25 local banks to find one who was interested. They are out there, but you can't give up after one or two
Thank you both very much, I'll start searching for the right term and actually am going to start attending local REIA meetings here in the near
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