Owe 600K on 1.1mil property and looking to refinance
600k owed on a commercial property. Looking at a dozen foreclosures within the last few years, due to housing crash. Credit is wrecked because of it. Steady cash flow and some rental properties still. I'm looking to revamp the property, which is a strip mall. Looking for options to refinance. The bank that holds the mortgage won't do it because I only occupy one unit in the plaza. I have to occupy 50%, even though I own 100% and lease out the units. Just looking for direction fro you guys if you can help, and I thank you in advance.
[{"id": "c6qagln", "text": "If I were to guess, the reason for the lack of enthusiasm by the bank is the personal credit not the fact that you occupy less than 50% of the property. It could very well be that they are concerned about the impact of the problems that you have in the other properties and how they can affect the one that they have in their books.\n\nSo what to do?\n\nIf the property cash flows, why don't you put a nice package together with a rent-roll, last two tax returns for the RE Holding Co. for the shopping center, your PFS and PTR,  and a rough budget for the proposed improvements. and contact a couple of community banks, When you discuss the matter with the lender tell him about your credit woes and see if he can do the deal. You can even get your own credit report and give him a copy so he wont even have to pull one to let you know if he can do it.\n\nThe problem is probably the credit. It might be possible that the current bank might know too much about you :)\n\n", "replies": [], "depth": 1}, {"id": "c7sxh7h", "text": "Where is the building located?  I find it hard to believe that if the building is worth $1.1m cannot substantially cover the debt service on a $600k note.  Maybe the value of the building is lower than you think.", "replies": [], "depth": 1}]