Lender wont loan on property. Ideas???

4 Replies

Hello BP! I am in contract for a commercial property what is in disrepair. There is a cinder block garage that I was going to use as my shop (im a plumbing contractor) and a 2 story house built in 1912 that i was hoping to lease out to a business. I knew the property was going to need some work but the lender just notified me today that the structures are uninhabitable and they won't loan on the property. Our contract has the owner financing 50K, our lender 229K and our down payment of 26K. The lender said maybe the owner would carry the entire note until we can make the improvements to get it refinanced conventionally. Has anyone renegotiated the selling price after the accepted offer, even though the seller listed the property AS-IS? We have contingencies on financing, inspections, ect that give us an out but Im curious what others think.

Thanks!

JR  

Originally posted by @Jeremiah Ramp :

Hello BP! I am in contract for a commercial property what is in disrepair. There is a cinder block garage that I was going to use as my shop (im a plumbing contractor) and a 2 story house built in 1912 that i was hoping to lease out to a business. I knew the property was going to need some work but the lender just notified me today that the structures are uninhabitable and they won't loan on the property. Our contract has the owner financing 50K, our lender 229K and our down payment of 26K. The lender said maybe the owner would carry the entire note until we can make the improvements to get it refinanced conventionally. Has anyone renegotiated the selling price after the accepted offer, even though the seller listed the property AS-IS? We have contingencies on financing, inspections, ect that give us an out but Im curious what others think.

Thanks!

JR  

 maybe go Hard money get it stabilized and refi..  

@Jeremiah Ramp

I agree with Jay, give hard money a try. I actually had an appraisal come through 4 days before closing $10k less and she contacted the sellers and after a few days they agreed to take a little less. That financing contingency gives you an out which is nice to have. It all depends on the seller, how long it’s been sitting and if it’s likely going to happen to the next person that wants to buy it. Now is a great time to try and get it for a little less or ask about seller financing. Always worth a try! :) you may be the first person to bid on it in a year, you just never know!

Good luck!

Originally posted by @Jeremiah Ramp :

Thanks Jay, i've never got a hard money loan but its an avenue im open to.

there are local HML in Bend of course.. also Iron Bridge in Portland is competitive.