Home › Forums › Closed Forums › Buying and Selling RE › Any info on commercial loans?
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jpinpb.
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April 19, 2008 at 3:28 PM #12492April 19, 2008 at 5:21 PM #190522
EconProf
ParticipantBobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
April 19, 2008 at 5:21 PM #190636ParticipantBobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
April 19, 2008 at 5:21 PM #190588ParticipantBobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
April 19, 2008 at 5:21 PM #190574ParticipantBobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
April 19, 2008 at 5:21 PM #190544ParticipantBobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
April 20, 2008 at 9:07 AM #190737jpinpb
ParticipantBobS – Thanks for the info. Someone once told me commercial loans, i.e. for something like a 5-plex, are cheaper than for SFH. My situation is different b/c the property is raw undeveloped land. I know hard money loans are $$$$. I was hoping if I could get some kind of short-term secured loan w/the commercial lot that it would be less. I appreciate the advice. I’m not sure how “cooperative” the seller will be. They’re looking at 60 days and it’s foreclosure time.
April 20, 2008 at 9:07 AM #190761ParticipantBobS – Thanks for the info. Someone once told me commercial loans, i.e. for something like a 5-plex, are cheaper than for SFH. My situation is different b/c the property is raw undeveloped land. I know hard money loans are $$$$. I was hoping if I could get some kind of short-term secured loan w/the commercial lot that it would be less. I appreciate the advice. I’m not sure how “cooperative” the seller will be. They’re looking at 60 days and it’s foreclosure time.
April 20, 2008 at 9:07 AM #190789ParticipantBobS – Thanks for the info. Someone once told me commercial loans, i.e. for something like a 5-plex, are cheaper than for SFH. My situation is different b/c the property is raw undeveloped land. I know hard money loans are $$$$. I was hoping if I could get some kind of short-term secured loan w/the commercial lot that it would be less. I appreciate the advice. I’m not sure how “cooperative” the seller will be. They’re looking at 60 days and it’s foreclosure time.
April 20, 2008 at 9:07 AM #190803ParticipantBobS – Thanks for the info. Someone once told me commercial loans, i.e. for something like a 5-plex, are cheaper than for SFH. My situation is different b/c the property is raw undeveloped land. I know hard money loans are $$$$. I was hoping if I could get some kind of short-term secured loan w/the commercial lot that it would be less. I appreciate the advice. I’m not sure how “cooperative” the seller will be. They’re looking at 60 days and it’s foreclosure time.
April 20, 2008 at 9:07 AM #190850ParticipantBobS – Thanks for the info. Someone once told me commercial loans, i.e. for something like a 5-plex, are cheaper than for SFH. My situation is different b/c the property is raw undeveloped land. I know hard money loans are $$$$. I was hoping if I could get some kind of short-term secured loan w/the commercial lot that it would be less. I appreciate the advice. I’m not sure how “cooperative” the seller will be. They’re looking at 60 days and it’s foreclosure time.
April 20, 2008 at 9:15 AM #190752ParticipantBobS
To the best of my knowledge, the order of loan types, from the lowest rates to the highest is as follows:
1. Owner-occupied SFR
2. Non-owner-occupied SFR
3. Commercial Property
4. Raw land or lots.An exception to #3 being expensive would be if you can snag a SBA loan. Tack on a higher rate to any of the above for poor credit or higher LTV.
Other readers please weigh in.
April 20, 2008 at 9:15 AM #190776ParticipantBobS
To the best of my knowledge, the order of loan types, from the lowest rates to the highest is as follows:
1. Owner-occupied SFR
2. Non-owner-occupied SFR
3. Commercial Property
4. Raw land or lots.An exception to #3 being expensive would be if you can snag a SBA loan. Tack on a higher rate to any of the above for poor credit or higher LTV.
Other readers please weigh in.
April 20, 2008 at 9:15 AM #190804ParticipantBobS
To the best of my knowledge, the order of loan types, from the lowest rates to the highest is as follows:
1. Owner-occupied SFR
2. Non-owner-occupied SFR
3. Commercial Property
4. Raw land or lots.An exception to #3 being expensive would be if you can snag a SBA loan. Tack on a higher rate to any of the above for poor credit or higher LTV.
Other readers please weigh in.
April 20, 2008 at 9:15 AM #190818ParticipantBobS
To the best of my knowledge, the order of loan types, from the lowest rates to the highest is as follows:
1. Owner-occupied SFR
2. Non-owner-occupied SFR
3. Commercial Property
4. Raw land or lots.An exception to #3 being expensive would be if you can snag a SBA loan. Tack on a higher rate to any of the above for poor credit or higher LTV.
Other readers please weigh in.
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