Skip to content
Private Lending & Conventional Mortgage Advice
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017

User Stats

13
Posts
5
Votes
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017
William Lu
  • Santa Barbara, CA
5
Votes |
13
Posts

Having Trouble Finding a Loan for an Out of State Commercial Property

William Lu
  • Santa Barbara, CA
Posted Aug 8 2023, 18:54

I live in California and found an off market deal for a commercial property in a different state. I plan on renting it out. 

However, I am having trouble finding any lenders. 

*BoA says they don't do commercial loans for commercial investment properties, only for businesses. 

* I tried contacting a local mortgage broker, but she didn't find anything .

* Local credit union is out of the question because I don't live in that state.

Any tips on finding a lender would be much appreciated.

Chris Seveney's profile image
Chris Seveney
Pro Member
  • #2 All Forums Contributor
  • Investor
  • from Virginia
  • Member since May 23, 2015

User Stats

13,487
Posts
10,716
Votes
Chris Seveney's profile image
Chris Seveney
Pro Member
  • #2 All Forums Contributor
  • Investor
  • from Virginia
  • Member since May 23, 2015
Chris Seveney
Pro Member
#2 All Forums Contributor
  • Investor
  • Virginia
10,716
Votes |
13,487
Posts
Chris Seveney
Pro Member
#2 All Forums Contributor
  • Investor
  • Virginia
Replied Aug 8 2023, 19:21

@William Lu

What type of commercial property is it? Is it occupied? What’s the use?

Need more info on property to try and provide you with a place to go

William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017

User Stats

13
Posts
5
Votes
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017
William Lu
  • Santa Barbara, CA
5
Votes |
13
Posts
William Lu
  • Santa Barbara, CA
Replied Aug 8 2023, 19:33
Quote from @Chris Seveney:

@William Lu

What type of commercial property is it? Is it occupied? What’s the use?

Need more info on property to try and provide you with a place to go

Hi Chris. Thanks for the inquiry. 

It is an office space. Currently no tenants. The place was previously owner occupied and I plan on purchasing the property as an investment to be rented out.


 The place is in a medical plaza so I plan on renting it out as a pharmacy or any other office use.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes
Devin Peterson's profile image
  • Lender
  • Member since Oct 17, 2022

User Stats

1,119
Posts
381
Votes
Devin Peterson's profile image
  • Lender
  • Member since Oct 17, 2022
Devin Peterson
  • Lender
381
Votes |
1,119
Posts
Devin Peterson
  • Lender
Replied Aug 9 2023, 03:37

Hi William,

There are a few key pieces missing from your inquiry. An experienced and well-versed DSCR / commercial-based broker should have no problem helping locate a lender for this deal.

Chris Seveney's profile image
Chris Seveney
Pro Member
  • #2 All Forums Contributor
  • Investor
  • from Virginia
  • Member since May 23, 2015

User Stats

13,487
Posts
10,716
Votes
Chris Seveney's profile image
Chris Seveney
Pro Member
  • #2 All Forums Contributor
  • Investor
  • from Virginia
  • Member since May 23, 2015
Chris Seveney
Pro Member
#2 All Forums Contributor
  • Investor
  • Virginia
10,716
Votes |
13,487
Posts
Chris Seveney
Pro Member
#2 All Forums Contributor
  • Investor
  • Virginia
Replied Aug 9 2023, 03:54

@William Lu

Vacant office space is very difficult to finance in todays environment

May need to go private lending route

What’s the purchase price and amount financed

Brian Valdivia's profile image
Brian Valdivia
Lender
  • Investor
  • from Kingsville, MD
  • Member since May 2, 2017
  • Posts 69
  • Votes 13
  • Experience 4 Yrs
  • Investments 90

User Stats

69
Posts
13
Votes
Brian Valdivia's profile image
Brian Valdivia
Lender
  • Investor
  • from Kingsville, MD
  • Member since May 2, 2017
  • Posts 69
  • Votes 13
  • Experience 4 Yrs
  • Investments 90
Brian Valdivia
Lender
  • Investor
  • Kingsville, MD
13
Votes |
69
Posts
Brian Valdivia
Lender
  • Investor
  • Kingsville, MD
Replied Aug 9 2023, 06:19
Quote from @William Lu:

I live in California and found an off market deal for a commercial property in a different state. I plan on renting it out. 

However, I am having trouble finding any lenders. 

*BoA says they don't do commercial loans for commercial investment properties, only for businesses. 

* I tried contacting a local mortgage broker, but she didn't find anything .

* Local credit union is out of the question because I don't live in that state.

Any tips on finding a lender would be much appreciated.


 Hey William!  Once this property is leased up and stabilized I think that you'll have a much easier time getting longer term financing.  I do have a few resources that can help on the financing for this one, but definitely want to wait until it's stabilized.

William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017

User Stats

13
Posts
5
Votes
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017
William Lu
  • Santa Barbara, CA
5
Votes |
13
Posts
William Lu
  • Santa Barbara, CA
Replied Aug 9 2023, 13:39

, @Chris Seveney,

@Devin Peterson

@Brian Valdivia

Thanks all for the tips.

The property is $400k and I plan on putting 20-25% down with a credit score of 780+.

I'll looking into having a tenant but I worry about the coordination woth a "chicken and egg" situation.

How would I get a tenant without owning the property?

How would I get a lender when there is no tenant. 

I may have to look into a private lender as suggested above.

Brian Valdivia's profile image
Brian Valdivia
Lender
  • Investor
  • from Kingsville, MD
  • Member since May 2, 2017
  • Posts 69
  • Votes 13
  • Experience 4 Yrs
  • Investments 90

User Stats

69
Posts
13
Votes
Brian Valdivia's profile image
Brian Valdivia
Lender
  • Investor
  • from Kingsville, MD
  • Member since May 2, 2017
  • Posts 69
  • Votes 13
  • Experience 4 Yrs
  • Investments 90
Brian Valdivia
Lender
  • Investor
  • Kingsville, MD
13
Votes |
69
Posts
Brian Valdivia
Lender
  • Investor
  • Kingsville, MD
Replied Aug 9 2023, 13:57
Quote from @William Lu:

, @Chris Seveney,

@Devin Peterson

@Brian Valdivia

Thanks all for the tips.

The property is $400k and I plan on putting 20-25% down with a credit score of 780+.

I'll looking into having a tenant but I worry about the coordination woth a "chicken and egg" situation.

How would I get a tenant without owning the property?

How would I get a lender when there is no tenant. 

I may have to look into a private lender as suggested above.


For some reason I thought the purpose of this was for a refinance. Do you have any idea what the market rent would be, or what the average rent per square footage is? This is something that can still potentially be done depending on how the DSCR will shake out?

Dave Skow's profile image
  • Lender
  • from Seattle, WA
  • Member since Sep 14, 2014

User Stats

2,434
Posts
839
Votes
Dave Skow's profile image
  • Lender
  • from Seattle, WA
  • Member since Sep 14, 2014
Dave Skow
  • Lender
  • Seattle, WA
839
Votes |
2,434
Posts
Dave Skow
  • Lender
  • Seattle, WA
Replied Aug 9 2023, 14:50

@William Lu- try  researching the  previous lenders / loans /  transactions  in the buidling and the  surrounding areas to  see what entities have made loans on it  ......also - if you locate some options  your  down payment needed will likely be  higher than 25% of the purchase price ....is there anyway to  raise  the  300K  some other way ? ( heloc on home /  401K loan / leverage  homes  equity ) 

Shafi Noss's profile image
  • from Washington, D.C.
  • Member since May 11, 2018

User Stats

450
Posts
243
Votes
Shafi Noss's profile image
  • from Washington, D.C.
  • Member since May 11, 2018
Shafi Noss
  • Washington, D.C.
243
Votes |
450
Posts
Shafi Noss
  • Washington, D.C.
Replied Aug 9 2023, 14:52

If you need a private bridge loan some friends of mine do this nationwide and on any asset but they are conservative on values. 

Timothy Howdeshell's profile image
  • Investor
  • from Fresno, CA
  • Member since Oct 4, 2016

User Stats

222
Posts
224
Votes
Timothy Howdeshell's profile image
  • Investor
  • from Fresno, CA
  • Member since Oct 4, 2016
Timothy Howdeshell
  • Investor
  • Fresno, CA
224
Votes |
222
Posts
Timothy Howdeshell
  • Investor
  • Fresno, CA
Replied Aug 9 2023, 15:26

@William Lu you don't need to actually live in the area to work with many credit unions. Just give them a call to see if they have options for you. 

My recommendation is to post in your local (local to the property) investment facebook groups posing this question. I have always found all of the vendors and contacts that I needed very quickly this way. 

Dennis Muno's profile image
  • Lender
  • from Denton, TX
  • Member since May 11, 2023

User Stats

349
Posts
77
Votes
Dennis Muno's profile image
  • Lender
  • from Denton, TX
  • Member since May 11, 2023
Dennis Muno
  • Lender
  • Denton, TX
77
Votes |
349
Posts
Dennis Muno
  • Lender
  • Denton, TX
Replied Aug 9 2023, 19:14
Quote from @William Lu:

I live in California and found an off market deal for a commercial property in a different state. I plan on renting it out. 

However, I am having trouble finding any lenders. 

*BoA says they don't do commercial loans for commercial investment properties, only for businesses. 

* I tried contacting a local mortgage broker, but she didn't find anything .

* Local credit union is out of the question because I don't live in that state.

Any tips on finding a lender would be much appreciated.

 Hello William,

What type of commercial property is it?Is this a purchase or refi? How many units? Will the property need rehab? Is it in good condition? From what you say it sounds like the property is not occupied.

That will affect things like your financing options you get with any lender you speak to.

Dylan Vargas's profile image
Dylan Vargas
Pro Member
  • Rental Property Investor
  • from Chico, CA
  • Member since Mar 21, 2016

User Stats

598
Posts
326
Votes
Dylan Vargas's profile image
Dylan Vargas
Pro Member
  • Rental Property Investor
  • from Chico, CA
  • Member since Mar 21, 2016
Dylan Vargas
Pro Member
  • Rental Property Investor
  • Chico, CA
326
Votes |
598
Posts
Dylan Vargas
Pro Member
  • Rental Property Investor
  • Chico, CA
Replied Aug 11 2023, 19:46

@William Lu @Timothy Howdeshell Welcome! I would definitely check local community banks and credit unions. Many have no requirement of you living there. Good luck and keep us posted.

BiggerPockets logo
Find an Investor-Friendly Agent
|
BiggerPockets
Match with a top investor-friendly agent who can help you find, analyze, and close your next deal. Get started now!
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017

User Stats

13
Posts
5
Votes
William Lu's profile image
  • from Santa Barbara, California
  • Member since Dec 27, 2017
William Lu
  • Santa Barbara, CA
5
Votes |
13
Posts
William Lu
  • Santa Barbara, CA
Replied Aug 12 2023, 19:21

Thank you guys for all the inputs. The tips have been helpful and kept me motivated. 

I found a lender broker in the same state as the property and he got me in touch with a commercial lender.

I'm working on a pro forma and other forms to fill out.
 

Briazsa Abney's profile image
  • Lender
  • Member since Apr 15, 2023

User Stats

20
Posts
1
Votes
Briazsa Abney's profile image
  • Lender
  • Member since Apr 15, 2023
Briazsa Abney
  • Lender
1
Votes |
20
Posts
Briazsa Abney
  • Lender
Replied Aug 13 2023, 17:56

Get 100% of the funds you need with Cogo Capital. Cogo Capital’s Promise! We’ll beat any competitor’s rate.

Are you in need of financial assistance? Look no further!!! Cogo Capital. We understand that unexpected expenses can arise at any time, and we are dedicated to providing you with the funds you need, quickly and hassle-free.

Why choose Cogo Capital?

  • Your success is our success! Our mission at Cogo Capital is to give you the funds necessary to do more fix and flips and then reward you each time you successfully complete a transaction.
  • As your business grows, your rates, fees, and benefits improve. Once you complete four successful exits, you can qualify for the lowest rates and fees and even eliminate appraisals altogether!
  • We can go as low as $30,000 so that you can borrow the amount that you need.
  • Our interest rates start as low as 8.99%
  • Origination points start as low as 1%
  • As you grow, we can customize your Cogo experience.

Flexible Repayment Options: We tailor our repayment plans to suit your financial situation, making it easier for you to manage your loan.

Fast Approval Process: No more waiting around. Our streamlined approval process ensures you get a decision in no time. As long as you move fast we move fast!

No Hidden fees: Transparency is our priority. You won’t find any hidden fees or surprises with Cogo Capital.

Excellent Customer Service: Our dedicated team of experts are ready to assist you every step of the way. Ensuring you have a smooth borrowing experience.

Apply now and secure your future.

Contact me via email or phone to review our lending terms and conditions or if you have a deal and need urgent funding!

Cogo Capital: Your Trusted Financial Partner

Disclaimer: Loans are subject to approval. Terms and conditions apply. Interest rates may vary based on creditworthiness and your deal. Borrow responsibly.