What options do I have for commercial loans? We personally (not as a business) own a multi-use commercial property outright and need to pull out most of the equity in it but it’s currently vacant so we keep hearing no from commercial lenders. Are there any products out there that would work for us?
We estimate it has a value of only $250,000. Our other option is to sell but it’s not ideal. Any ideas for loan products or lenders to contact?
[{"id": "ixsw8yt", "text": "Bridge loans for 8-12% on a 1-2 year term. \n\nYou might get a long term bank amortized at 9% to 10.5%. \n\nThey\u2019re going up to 75% LTV or possibly 80%.\n\nIt\u2019s not a big dollar amount so you won\u2019t have trouble getting the cash but the terms and time period will not be ideal. \n\nThere are more creative structures out there getting advertised but it seems like they\u2019re mostly all talk.", "replies": [{"id": "iz7w8zf", "text": "Any recommendations for specific banks to talk to? Our local bank said no (and the others don\u2019t do commercial loans), and the ones I searched for online only deal with dollar amounts much greater than what we need.", "replies": [{"id": "iz7xuqf", "text": "Sorry, I don\u2019t but I think there\u2019s another group who aren\u2019t ready to commit their funds and would rather write smaller checks. The issue will be the loan to value ratio. You want private money or hard money, and be very careful who you work with. \n\nA broker can shop you around but they\u2019re more interested in their future relationships with funds so keep that in mind.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ixu41e6", "text": "Where is the building located?", "replies": [{"id": "iy4kp21", "text": "In a tiny rural town, so our fear is selling may take years.", "replies": [{"id": "iy4kx84", "text": "Everything sells if you price correctly", "replies": [{"id": "iy4l9lw", "text": "We also see the benefits of owning it, the 2nd level could be an Airbnb or long-term rental and we can run a business or lease out the lower level. That won\u2019t happen for 6 months+ though so we\u2019d like to access the equity in the building in the meantime.", "replies": [{"id": "iy4mpkq", "text": "In my opinion if you can show income from the building in the form of a lease or air Bnb I think the bank will be more likely to do an equity loan.", "replies": [{"id": "iy4mx3l", "text": "We were told 2 years of income from the three banks we spoke with - do you know if that\u2019s the case across the board?", "replies": [{"id": "iy4nmdb", "text": "Yes", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]