Hello BP Family
I have a client interested in purchasing a 5 unit apartment building in Redlands, CA in San Bernardino County. They are thinking of living there for a year or two before buying their own house. I haven't dealt much with commercial loans before and was wondering if is possible to get a commercial loan with less than 25% down. The two lenders my buyer has talked to have required 25% down. They have good credit. Any recommendations for lenders would be greatly appreciated. We are considering owner financing as well if that is a possibility.
I would send a letter of intent to master lease the apartment building with an option to buy based on a price that is attractive to getting a loan in 24 months.
You need to know the NOI or Net Operating Income.
@Anthony Chara may be able to help.
Thank you for the prompt reply. I believe they have calculated NOI already and brought that to the lenders but thank you for the link. It was quite detailed. I will make sure they check that out.
Do you know any commercial lenders in the Los Angeles or Orange County or San Diego markets that would be willing to look at the property. The problem is that it is a small loan on the commercial scale around 500k so we have run into that issue with lenders as well.
We will look into the master lease option but the seller is unwilling to do any seller financing so I doubt they will be willing to wait 2 years to sell. But always worth a try.
Thanks for your help!
Kiersten: I own a debt and equity firm that arranges financing for commercial and multifamily real estate across the country. I would be glad to assist. Send me a PM or colleague request to discuss further.
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