Looking for possibilities on how to purchase industrial warehouse
Hello,

I am from Birmingham, Alabama and interested in purchasing a warehouse to open a sports facility. I am interested in a property worth 600k ,But, I am a complete newbie and I wanted to know what are all the possibilities of securing a loan for 600k.

Does banks give commercial loan for first time purchases like these ? I have few more friends that are interested in my business idea, we all three combined have an earning over 300k together and have a cash of 60k.

Can you guys please recommend the type of finance that we should look for here for a warehouse ?

thank you
[{"id": "it05u5y", "text": "SBA lenders will lend but you'll need experience in the industry.\n\nCredit unions if you've built relationships. \n\n60K cash would be difficult -- usually 20-25 percent is what they're looking for. \n\nBridge loans through private lenders may do it, but you're looking at over 10% interest rate and payback in 12-24 months (usually via refinance). \n\nRealistically, from my experience, the only way to get this done is to pull money out of assets you already own to try and come up with the 600K. If you and your partners own houses, then search for equity lines of credit. That's probably going to give you much better rates than any business type loan.\n\nI have private bridge lenders I could refer you to, but 10% plus closing costs are going to be expensive, plus they'll want you to personally guarantee everything (ie: they take your house if you can't pay it back)", "replies": [{"id": "it05zk7", "text": "As an additional note, after you pull out money from your personal properties which should give you a 30 year term, you can refinance the business and pull money back out with SBA loan after 2 years from the start date (assuming the business is profitable)", "replies": [], "depth": 2}], "depth": 1}, {"id": "it07r0s", "text": "$600,000 seems like a very low price for what I\u2019m imagining you want to use it for.", "replies": [{"id": "it0dgqn", "text": "It is Alabama though.", "replies": [], "depth": 2}], "depth": 1}, {"id": "it0pvl7", "text": "I would recommend to rent for 2-3 years as you establish yourself in the industry and save up the 25% down.", "replies": [], "depth": 1}, {"id": "it0tyh1", "text": "When you are starting out rent don\u2019t buy.  You wont be able to finance this and fitness facilities tank constantly. You will still most likely have to guarantee the lease but a lease it less risk then a mortgage.", "replies": [], "depth": 1}, {"id": "it0wijk", "text": "I do agree that you should rent, but my opinion is Birmingham has major potential in the future.  It would definitely be an investment I would make.", "replies": [{"id": "it1s903", "text": "Why?", "replies": [{"id": "it4g221", "text": "How many cities with skyscrapers are left where you can buy commercial real estate cheap?  I don't foresee the population growth of the sunbelt changing anytime soon, and there are really no other cities that have the upside.  \n\nThe state has invested a huge amount of money there in the University of Alabama Medical Center, the State is increasingly taking over city and county functions to eliminate governmental failures, low cost of living will allow easier business growth...\n\nUnderstanding how to forecast supply and demand for commercial real estate is important now more than ever.  No longer can you just buy in an established market and count on interest rates to drop and the value to increase.  Writing all the reasons for my opinion would take pages.", "replies": [{"id": "it4gvup", "text": "Thanks ! \nI'll do some research.\nI kinda dismissed Alabama out of hand.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "it37ncm", "text": "CRE owner/broker. Lease. Use your $ to  build your operations then buy as your biz will have a proven model and income. Ideally an option to buy built into your lease. Be shrewd with your capital.", "replies": [], "depth": 1}]