All Forum Posts by: David Bilandzija

Financing these properties with conventional/bank loans isn't always an option.  I help facilitate financing these types of deals.  The options available to investors and borrowers are better than ever.  

Loans are designed for residential non owner occupied properties, i.e. single family residences, condo, townhome, 2-4 units

Program Features: 

* Simple Documentation, no tax returns, no DTI, no debt coverage ratio requirement.

* 600-650 min FICO Credit 

* Purchase/refinance up to 75% LTV $75,000 - $10million

* Rates range from 3.99% - 8.25%

Long term

* 30 yr fixed, flexible prepay

* 1-10 years customizable/flexible interest only & 30 yr term

Contact me with your questions.

David Bilandzija 6 2 6 - 4 8 4 - 0 1 8 2

Investor Property Loan

@Casey Caton I work with a direct lender that finances adult care/assisted living facilities.  Caveats to getting these loans done are 1) they must be residential properties 2) must also be non-owner occupied.  

The terms are flexible and borrowers have plenty of options, i.e. long term, short term, fully amortizing, interest only, etc.  

@Ashley Corbett Hi Ashley, yep we lend in NC and OH.  Sent you a message.

@Jackson Speaks I can work with those values based on a portfolio loan.  Sent you a connection request

@Slade S.

Yes, debt service loan (DSCR) or an asset based program - I think you are headed in the right direction considering your W2/income status. There are programs out there that ignore your personal income and will even ignore debt coverage on the subject property.

@Holly Hudson My reason for asking, the commercial lender I originate loans with doesn't extend credit in IL.  We are in neighboring states though.  If you think it might help you out, I wouldn't mind generating a conditional loan approval for you.  No strings attached, just trying to help out a fellow member of the BP community.  

@Jeffrey Donis good insight

@Russell VanBlon

How many units? What's your LTV on the $875K purchase price?

To give you an idea of the sort of risk aversion on these situations, the commercial lender I represent sets a max LTV of 50% on purchase loans where the subject property is vacant.

Vacant commercial properties are a gamble for lenders. Single unit office spaces can be an even greater risk than multi-unit office spaces. Debt coverage, length of lease, remaining years on lease, type of tenant, among other considerations all play into the decision. 

Best of luck!

@Davere Currie 

The website below is a super useful tool for identifying crime statistics by neighborhood/address. As an investor or lender, this is key information to glean if you are unfamiliar with an area, i.e. out-of-state. The commercial lender I represent reviews these stats and generally avoids properties with neighborhood scout crime scores under 20 (translation, this neighborhood is more dangerous than approximately 80% of neighborhoods in the U.S. with a score of 20) If we entertain a property in a higher crime area it is usually at a reduced LTV, like 60% instead of our max 75%.

I work with a mortgage broker in Ohio that sends me a steady amount of loan requests on commercial multifamily. Cleveland is one of the markets I occasionally get inquiries about.  I've been witness to a few situations where subject properties a few blocks from each other have noticeably different crime stats. Something to keep in mind going when looking.  

Disclaimer: I don't profess to be an expert on Cleveland or Ohio real estate markets but I do have several years of experience funding commercial multifamily loans throughout the region.  I totally get the appeal but beware of issues with crime, high tenant turnover, and population decline as the other poster astutely pointed out.

https://www.neighborhoodscout....

@Holly Hudson Is the subject property located in Illinois?