Commercial loan needed to buy and fix up apartment building

Memphis, Tennessee
Private Lending & Conventional Mortgage Advice
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Commercial loan needed to buy and fix up apartment building

Jemma Jacques
Member since 2021 · 50 posts · 34 votes

Hello,

I am in escrow on a building in North Memphis and need to get a loan to buy the property and fix it up, can anyone point me in the right direction please of a good lender for this? someone who is quick is ideal since I am already in escrow. Alternatively a personal loan to buy the building and then I can fix it up down the road since it is a historical building and I might need time for all that process and getting the tax credits, I have 50% down payment and excellent credit, 
Other option is to get some type of portfolio on loan based on my other investment properties?

Thanks

Thank you

Jemma

1Reply
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Most Popular Reply

Simmy AhluwaliaPro Member
Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
3y

What's the actual purchase price, rehab amount and ARV?

1Reply
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  • Ernesto Garcia
    Lender · Long Beach, CA · Member since 2019 · 67 posts · 15 votes
    3y

    Hey Jemma this is right up our alley. Following up via DM. 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Jemma Jacques- thanks -  if the  proeprty you are  buying is indeed an apartment building with  more than 4 units - this  will be classified as a commercial loan ...if you have any  residential  poperties ( 4 units or less )  in your portfolio that  have  some  equity  - you might  consider  leveraging these  to get the  cash needed  for your  project 

    0Reply
  • Branden Petrangelo
    Oakley, CA · Member since 2017 · 3 posts · 3 votes
    3y

    Hey Jemma, I can help you with this. I will send you a message. 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Jemma Jacques:

    Hello,

    I am in escrow on a building in North Memphis and need to get a loan to buy the property and fix it up, can anyone point me in the right direction please of a good lender for this? someone who is quick is ideal since I am already in escrow. Alternatively a personal loan to buy the building and then I can fix it up down the road since it is a historical building and I might need time for all that process and getting the tax credits, I have 50% down payment and excellent credit, 
    Other option is to get some type of portfolio on loan based on my other investment properties?

    Thanks

    Thank you

    Jemma


     Hey Jemma, 

    Has an appraisal been done already? What is the exit strategy? Going hard money on this will be easy if you have 50% down. 

    [email protected]818-269-7983
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    0Reply
  • Josh Klein
    Banker · New York, NY · Member since 2017 · 61 posts · 6 votes
    3y

    I have a great lender that could help you here. I'll send you a DM.

    0Reply
  • Eugene Neal
    Lender · Member since 2022 · 138 posts · 20 votes
    3y
    Quote from @Jemma Jacques:

    Hello,

    I am in escrow on a building in North Memphis and need to get a loan to buy the property and fix it up, can anyone point me in the right direction please of a good lender for this? someone who is quick is ideal since I am already in escrow. Alternatively a personal loan to buy the building and then I can fix it up down the road since it is a historical building and I might need time for all that process and getting the tax credits, I have 50% down payment and excellent credit, 
    Other option is to get some type of portfolio on loan based on my other investment properties?

    Thanks

    Thank you

    Jemma


     We have closed many transactions of this nature. Plus we are a direct lender so speed isn't an issue. Based upon you claiming to be able to place 50% down, you will receive the best rates available at the moment. To give you an idea of the items need to quickly move through underwriting, I've listed them below. If you have further questions please don't hesitate to reach out.

    1. Business financial statements: Lenders will typically require financial statements for the business, including income statements, balance sheets, and cash flow statements. These statements should be prepared by a certified public accountant (CPA) and should cover at least the last two to three years.
    2. Personal financial statements: Lenders will also require personal financial statements for the business owners or guarantors, including information on assets, liabilities, and income. These statements should also be prepared by a CPA.
    3. Business plan: A detailed business plan outlining the purpose of the loan and how the funds will be used will be required. This plan should include a marketing plan, a detailed budget, and projected financial statements.
    4. Collateral: Lenders will require collateral for the loan, which could include real estate, equipment, inventory, or other assets.
    5. Creditworthiness: The creditworthiness of the business and its owners will be evaluated, including credit scores, payment history, and other financial metrics.
    6. Legal documents: Legal documents, such as business licenses, tax returns, and articles of incorporation, may also be required.
    7. Industry-specific requirements: Some lenders may have additional requirements specific to the industry in which the business operates, such as minimum revenue or cash flow requirements.
    0Reply
  • Andres Saias
    Lender · FL · Member since 2023 · 27 posts · 17 votes
    3y

    Hello Jemma, if you have 50% of the down payment it should be easy to get a hard money loan. If it's up to 4 units, we can offer you a bridge loan or a fix-and-flip loan. If it's more than 4 units it would be a commercial loan. If you need any help just DM me.

    0Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    3y

    What's the actual purchase price, rehab amount and ARV?

    1Reply
  • Edward Burke
    Investor · Member since 2023 · 4 posts · 0 votes
    3y

    For a (1-4-Unit)- There are NO Asset/NO income (These are Stated, not verified on a PFS and Application) Rehab programs offering 80-85/100/70, based on FICO and Experience. 5+ Units are a much different game.

    0Reply
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