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Courtney Goza
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Looking for Lender for Small Retail Strip Center in Houston, Tx

Courtney Goza
Posted Mar 1 2024, 12:15

My client is under contract on a 4800 sq ft 4 unit retail center in Houston, Tx. We have found financing through a couple of brokers, but my client does not want to pay a broker fee for financing. Can anyone recommend a direct lender who won't charge tons of fees who would write the loan? Looking for approx $380k funding 20% down. 30 year fixed is preferred. Client has excellent credit and several SFR that are paid off. The center is currently fully leased but a couple of the leases expire next year. One in January and the other in November. The other two are in 2025 and 2026. The listing agent believes all tenants will renew. Cap rate on the property is 13.5% and Houston has a shortage of retail spaces. This property was recently renovated and is on a busy corner.

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James Wise#1 Real Estate Agent Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
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James Wise#1 Real Estate Agent Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied Mar 4 2024, 04:34
Quote from @Courtney Goza:

My client is under contract on a 4800 sq ft 4 unit retail center in Houston, Tx. We have found financing through a couple of brokers, but my client does not want to pay a broker fee for financing. Can anyone recommend a direct lender who won't charge tons of fees who would write the loan? Looking for approx $380k funding 20% down. 30 year fixed is preferred. Client has excellent credit and several SFR that are paid off. The center is currently fully leased but a couple of the leases expire next year. One in January and the other in November. The other two are in 2025 and 2026. The listing agent believes all tenants will renew. Cap rate on the property is 13.5% and Houston has a shortage of retail spaces. This property was recently renovated and is on a busy corner.


 At HoltonWise we've got investor financing of all types. CLICK HERE to discuss available options for your retail project in Houston, Texas.

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Wale Lawal#2 New Member Introductions Contributor
  • Real Estate Broker
  • Houston | Dallas | Austin, TX
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Wale Lawal#2 New Member Introductions Contributor
  • Real Estate Broker
  • Houston | Dallas | Austin, TX
Replied Mar 4 2024, 05:15

@Courtney Goza

It's great that your client is looking into financing options for the 4-unit retail center in Houston. Given the specific requirements and preferences, I recommend considering a few options:

Get in contact with the Houston area's credit unions and banks. Given the great credit and property data of your customer, they could be open to negotiating favorable conditions in addition to reasonable rates and terms.

It may be worthwhile to get in touch with commercial mortgage lenders who focus in financing real estate. A few trustworthy lenders are regional commercial lenders, Chase Bank, and Wells Fargo.

Investigate internet loan systems for businesses that put borrowers and lenders in close contact. Consider Fundation, Credibly, and LendingTree as examples.

Make contact with private lenders instead of regular banks; they could be able to provide more accommodating conditions. Private lenders might be found through networking in the neighborhood real estate market or internet resources like BiggerPockets.

Attend Houston area forums or groups dedicated to real estate investing. Members can recommend lenders with good conditions and discuss their experiences with other lenders.

Although your customer would like not pay a broker fee, certain mortgage brokers focus on commercial real estate and might be able to connect them with lenders who don't impose large costs.

Remember to thoroughly review the terms and conditions of any loan offer, including interest rates, fees, and repayment terms. Additionally, engaging in negotiations with potential lenders can help in securing more favorable terms. Always advise your client to seek legal and financial advice before finalizing any financing agreement.

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Denver McClure
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  • Financial Advisor
  • Dallas, TX
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Denver McClure
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  • Financial Advisor
  • Dallas, TX
Replied Mar 4 2024, 18:58

Hey @Courtney Goza, we would be happy to speak with you and your client. Feel free to reach out if you'd like to connect.

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