Commercial Financing for an Apartment Building – NE Ohio

Commercial Financing for an Apartment Building – NE Ohio

Rental Property Investor · Somerville, MA · Member since 2011 · 101 posts · 19 votes

I am looking for some advice regarding financing for a smaller (24 unit building) in NE Ohio. I am debating whether to go through a hard money route versus bank financing.

Anyone have recommendations on solid hard money lenders, banks that lend in the North East Ohio (Cleveland – Akron – Canton) area?

Thank you for your consideration.

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  • Commercial Mortgage Underwriter / Broker · New York City, NY · Member since 2016 · 193 posts · 75 votes
    9y

    What is the purchase price? Is the building in good shape and cash flowing? If so, you should go a bank route. Hard money wouldn't make sense unless there is some underlying issue.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y

    @Jahan Habib Hard money is a short term loan product. It is only really used for flips.

    You need to refi using bank financing. You can get your loan out 5-15 years that way.

    US bank does 20 yr amortizations with 5 year calls. I believe they will lend to MA residents on Cleveland properties 

  • Rental Property Investor · Somerville, MA · Member since 2011 · 101 posts · 19 votes
    9y

    @Eric Schleif The purchase price is in the $415-435K Range. The property definitely needs cosmetics and has vacancies. It is still cash flowing though. I was going the hard money route because of the cosmetics + getting the vacancies (about a third of the units) filled. Plus the ability to move quickly to close the deal would be very helpful in the deal making process.

    @James Wise Thank you so much for the advice! I'll speak with US Bank and see if they can assist. I truly appreciate the advice.

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