All Forum Posts by: Tony Gunter

Bump

Lenders for renovation with or in a second lien position on a commercial property.

Has anyone worked with a commercial lender that will do that?

I have an opportunity to pick up a nice but unloved commercial property and use a BRRRR maneuver as well.

Good price, good location, good condition, owner willing to finance purchase. I’m looking for a lender for renovations. Obviously, someone will be in first position, so someone else will be in second position on the liens. Once renovations are completed, rent it out and get top of market prices. Refinancing after any seasoning into a longer term loan paying off both first and second upon refinancing.

Does that exist, or am I hunting unicorns?

Thanks.

@Jake Perry

Housing market and rental market influences each other, but they aren’t the same.

If it’s a high end property you could be right to worry. They are generally the first to go vacant in an economic resección.

@Jake Perry

You said it. Rent the property.

@Lauren Hogan

Because I live here 🤷🏼‍♂️

@Victor Funes

I get on the MLS and start researching similar properties and closed sales of similar properties and come up with a $$ feel based on those similar properties.

Basically my own BPO/CMA.

@Aharon Najafi

I’m in the ATL metro fringe, Cherokee County.

“If it’s anything more than cosmetic I’m out”.

If that’s your position your going to be paying straight up retail for most anything you find. That’s just the reality of the market now in ATL and all of north GA right now.

@Joel P.

That’s exactly right. You need some kind of value add somewhere so you can do to raise the value.

@Melinda McDonald

Same here. Not just the metro either.

Typical scenario: asking 75% of ARV still needing $50/Sqft of renovations.

@Jorge Gil

This is new construction, correct?