Updated over 3 years ago on . Most recent reply
Obtaining A commercial loan on a $200,000 property
i'm looking at a six unit property in upstate New York. They're asking $200,000, I need like $300,000 in repair and ARV of like $700,000. The problem I'm running into is that a residential broker won't give me a mortgage due to the factor it's multi family and a commercial mortgage broker is claiming that it's too small for mortgage. Anybody have any ideas how to finance such a deal?
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#5 Mortgage Brokers & Lenders Contributor
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You've got a couple of things going against you here.
The loan size is too small for regular lenders. The cost of the renovation is 1.5 x the cost of the property. It's in the Catskills so it's more than likely going to be considered rural and the LTV is pushing past 70% of the ARV
If you can't get the numbers lower and then get financing from a local bank or credit union, I'm not sure this one gets done.
Best of luck
Stephanie