Who provides commercial loans to individuals under $200k?

Question

I’m trying to put together a deal for three duplexes on a single parcel, requiring a commercial mortgage rather than residential. The purchase price will be around $165k, and most lenders I’ve seen don’t offer commercial products below $200k. Additionally, I’m investing as an individual and while I’m not opposed to setting up an LLC, most I’ve found require 2 years of business history.

I know there are options out there, I’m just struggling to find them. I’m not concerned with interest rates but am concerned with prepay penalties, as i plan to divide the parcel and refinance into residential. The only loan I’ve found so far required 70%% LTV and had a 5% prepay penalty.

Are there other options out there from larger institutions? Or any you recommend in North Carolina around the Charlotte area? I’m working my way through them but any help would be greatly appreciated! Thanks!

Patrick Menefee · Answer

@Greg Dickerson @Josh Buchanan @Nick Schoch @Kevin Stringari thank you all for your recommendations. I ended up finding a handful of viable options (Truliant, HomeTrust, Carter Bank and Trust) and will likely be going with Carter.

Josh Buchanan · Answer

Check with HomeTrust Bank. They are a smaller NC based bank and are pretty flexible. Several of the local credit unions around me also specialize in commercial under 1 million, so that’s another option.

Greg Dickerson · Answer

@Patrick Menefee smaller local and regional banks will do these for you. Have you checked with banks like BB&T, TowneBank etc?

Tj Hines · Answer

@Patrick Menefee seek out all of your local community savings and loans banks in and around your city.

Nick Schoch · Answer

If you can't find a traditional lender, private/hard money is always an option. While the rates are higher (8-10% or 4-5% over the lowest cost conventional debt), it can be a good bridge/shorter term solution.

Who provides commercial loans to individuals under $200k?

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