I have two buildings under contract, that host 25% vacancy, and a traditional commercial bank will not finance them. Looking for a lender that can finance a loan of 80/20 with a rate under 7.5% for a 12 to 18 month period in the State of Illinois.

Recommendations?

Originally posted by @Sean Morrisey :

I have two buildings under contract, that host 25% vacancy, and a traditional commercial bank will not finance them. Looking for a lender that can finance a loan of 80/20 with a rate under 7.5% for a 12 to 18 month period in the State of Illinois.

Recommendations?

Make sure to talk to several banks. They are all different and have different lending parameters, rates and terms. 

Agreed with @Greg Dickerson . I'd talk with local banks to see if they're the right fit. Small local lenders might be able to make it work.

What's the deal size? How much do you need? 

I would approach local banks. If you have any banking relationships, I'd lean on that, but you might be looking at having to eat a prepay for anything that's 18 months. Maybe you can work out a deal where the pre pay is dropped if you refinance in house once the property is stabilized. They'd most likely have to do this on their balance sheet though, so you'd probably need a previous relationship. 

It might be something that you need to pay slightly more for and go the commercial bridge route with. For multi family with a qualified sponsor, you wouldn't be looking at rates much higher. Feel free to message me if you'd like some more info on bridge options. 

@Sean Morrisey ..what's the purchase price on these properties? Unit count?  Income as-is and projected?