Does anyone know of any banks or lenders that will finance the purchase of commercial real estate notes? I have opportunity to buy a small portfolio of performing commercial notes with LTV's less than 50%. Just curious if anyone has financed any notes before.
Does anyone know of any banks or lenders that will finance the purchase of commercial real estate notes? I have opportunity to buy a small portfolio of performing commercial notes with LTV's less than 50%. Just curious if anyone has financed any notes before.
What a great opportunity. Congratulations! I’m not sure a bank would be your best option but it can’t hurt to try. If you have a good rapport with your local bank, drop by and ask. Otherwise, a partnership, private lenders, or even hard money lenders might be an option. It’s about proving you can return their investment. This is actually something I’ve wondered about and wanted to find. Kudos to you.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y
@Mary Parsek you are pretty close with this forum but I would suggest posting this in the "Mortgage Notes" forums. Or maybe even the "Commercial Real Estate" forum. This is more for residential stuff here.
I have a bank locally that will use DOT as collateral for loans. Otherwise, you'll have to go for a hard money lender and expect 12%+. Private money may be better.