Nashville, TN · Member since 2017 · 6 posts · 0 votes
I own a mixed use building in Connecticut, owned free and clear (no mortgage on it). It is currently vacant. I’ve been rehabbing it since early 2017. It’ll take a few more months to have it ready for rent, but need some financing to get the remaining work done on it. Anyone experienced with finding commercial equity lines of credit for a vacant building??
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
8y
@Brandt Gentry I know this isn't what you want to hear but based on my experience this is going to be tough. You have several things going against you.
1) The property is vacant. Underwriters hate when I bring them a vacant building (or maybe they just hate me!).
2) You're out of market for smaller, local banks in the CT area. If you were living in CT this would probably be much easier as I could see a local bank working with you on something like this.
3) The property appears to be semi-complete. Another red flag for a lender.
Perhaps you could get a Hard Money loan from some of the commercial platforms out there. A few questions:
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
8y
@Brandt Gentry I know this isn't what you want to hear but based on my experience this is going to be tough. You have several things going against you.
1) The property is vacant. Underwriters hate when I bring them a vacant building (or maybe they just hate me!).
2) You're out of market for smaller, local banks in the CT area. If you were living in CT this would probably be much easier as I could see a local bank working with you on something like this.
3) The property appears to be semi-complete. Another red flag for a lender.
Perhaps you could get a Hard Money loan from some of the commercial platforms out there. A few questions:
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
8y
@Brandt Gentry that would put your loan amount at ~50% LTV assuming your current value is accurate.
I'd recommend posting an ad in the Marketplace Forum seeking just that. A 50% LTV loan is a pretty safe bet so you'll probably be able to get somebody to bite assuming you're willing to pay the points/higher interest.
Another option would be to contact some credit unions in the CT market you're property is located in. A credit union in my market will occasionally lend to out of state investors on commercial properties so there may be on there as well.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
8y
@Brandt Gentry maybe trying posting this same discussion in the "commercial" forums here on Bigger Pockets? Leave this post up but try there too. You might get some more responses there. Maybe even identify the state in the subject line for better results. Good luck!