Commercial Mortgage Questions

[Mario Garaffa]

Good Afternoon, I currently lease a mixed used commercial/ residential building. I would like to buy it and the owner is really motivated. If my estimations are correct the property is worth about 750k. The owner has moved away and has agreed to sell me the property for what he own on the current mortgage, which is about 430k.

Every bank i contact is still requesting anywhere between 20-25% down. Is there anyway to use the positive equity towards obtaining a loan?

Any info would be greatly appreciated. 

Thank you,

[Chris Mason]

Originally posted by @Mario Garaffa:

Good Afternoon, I currently lease a mixed used commercial/ residential building. I would like to buy it and the owner is really motivated. If my estimations are correct the property is worth about 750k. The owner has moved away and has agreed to sell me the property for what he own on the current mortgage, which is about 430k.

Every bank i contact is still requesting anywhere between 20-25% down. Is there anyway to use the positive equity towards obtaining a loan?

Any info would be greatly appreciated. 

Thank you,

 If this were residential real estate here in California and you were to call me, I'd structure it as a rate/term refinance. Not sure if that's viable for commercial. 

If the folks picking up the phone when you call are more "order takers" than they are "deal makers," structure your "order" thusly: "Hello, I'd like to rate/term refinance my partner's commercial property. As part of the transaction, I'll be being added to title. My partner will be quit claiming off title, and I'll be getting a new title insurance policy in my name. The refinance will also just be in my name." See if that does the trick, basically just putting the order taker in the right mindset.

I don't do commercial mortgages, so that might very well be completely crazy to a commercial lender, only way to find out is to ask.