Commercial Real Estate

Member since 2026 · 5 posts · 2 votes

I have a question about commercial real estate financing. In this situation I have a contact with a property available in the St Louis area. Has environmental concerns, so not financeable. There is an identified quick resale exit as substantial profit. My question is how would people take down a deal like this without personal cash liquidity to close? JV?

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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
3mo
why can the buyer pay higher price, but you can't? Why not just wholesale it?
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- Willard McKinsey
  OP
  Member since 2026 · 5 posts · 2 votes
  3mo
  @Ronald Rohde very detailed original sellers contract restrictions require me to buy first. I do not have the pockets to buy cash.
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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
3mo
Quote from @Willard McKinsey:

I have a question about commercial real estate financing. In this situation I have a contact with a property available in the St Louis area. Has environmental concerns, so not financeable. There is an identified quick resale exit as substantial profit. My question is how would people take down a deal like this without personal cash liquidity to close? JV?

@Willard McKinsey
Deals with environmental concerns can definitely narrow the financing options. If the resale opportunity is as strong as you believe, you may want to explore private capital or experienced commercial bridge lenders, but the environmental risk and exit timeline will likely be key factors for any funding source.
786-656-0387
DreamPoint Capital
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- Willard McKinsey
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  Member since 2026 · 5 posts · 2 votes
  3mo
  @Vijay Friedman Bridge lenders I've run across are still concerned about environmental, and I guess the JV question is a nod to private capital. Problem is I don't have a wide enough network. I have potential JV's if financing could happen but not cash JV.
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Gabe OrlanskyPro Member
Lender · Miami, FL · Member since 2026 · 21 posts · 4 votes
2mo
If conventional financing isn't an option due to environmental concerns, investors typically look at a few alternatives: a JV with a capital partner, private equity or high-net-worth investors, private/hard money financing, or structuring the deal as an assignment or double close if appropriate.

The key questions are: What's the environmental issue, how solid is the exit buyer, and what's the expected timeline to resale?
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J CastroBusiness Member
Lender · Florida · Member since 2025 · 684 posts · 246 votes
2mo
It really depends on why the property isn't financeable and whether the environmental issue has been fully quantified.

If contamination is involved (Phase I or Phase II findings), most conventional lenders will step away until the issue is resolved. In situations like this, investors often look at several alternatives:
- Joint Venture (JV): Bring in an equity partner who provides the capital while you contribute the deal, due diligence, and exit strategy.
- Private Capital: Some private investors or family offices are willing to fund deals with environmental issues if the risk is clearly defined and the exit timeline is short.
- Hard Money or Bridge Financing: A few specialty lenders may consider these deals, but they'll want a clear remediation plan or a strong exit strategy. Not every private lender will finance environmentally challenged properties, so it's important to find one with experience in this niche.
Before moving forward, I'd also verify:
- Has a Phase I or Phase II Environmental Site Assessment been completed?
- Is there a cost estimate for remediation?
- Is the end buyer fully aware of the environmental issue?
- Is there a signed purchase agreement or LOI from the exit buyer, or is it still an anticipated resale?
A "substantial profit" can disappear quickly if environmental cleanup costs, legal liability, or delays are underestimated. Thorough due diligence is critical.

Out of curiosity, is this an industrial property, retail site, former gas station, or another type of commercial asset? The type of contamination and property use can significantly affect the financing options available.
JCREIG Capital Funding
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
2mo
The hard facts are that 99% of the “great” deals inexperienced investors identify aren’t actually “great” or even “good” deals; they overlook obvious property deficiencies; use comps without proper adjustments; or flat out believe everything the seller tells them without proof and or take “pro forma” financials as gospel usually sans some important expenses.
Private Mortgage Financing Partners, LLC
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