Trying to find a lender for commercial real estate property
New to real estate investing. Thinking to invest in an income producing commercial property with 50% down payment. Will the lender be willing to finance the remaining 50% based upon the income generated by the property itself? Any other advice? Sorry for naive question.
[{"id": "j1vbiil", "text": "Generally minimum is 20% down. 50% down might get you more relaxed underwriting standards, not sure. \n\nThey are going to want to see how the asset is performing currently as well as your personal income/financial profile etc", "replies": [], "depth": 1}, {"id": "j1vc4qe", "text": "They 'll want to see ability to repay the loan via eith property cash flow or your PFS, and an exit.\n\nIf you want a bridge loan figure 2 - 4 weeks depending on how fast they can get an appraisal done.\n\nFor a perm loan at least twice that amount of time at a bank.\n\nIf you need help PM me.", "replies": [], "depth": 1}, {"id": "j1vehbl", "text": "DM me and I\u2019ll get you a lender contact who\u2019s private and understands income producing assets", "replies": [], "depth": 1}, {"id": "j1vfjpc", "text": "Commercial mortgage broker here. \n\nSend me a DM if you can\u2019t find any lenders or would like to compare rates. This should be a relatively easy deal to structure given all the factors are in place.", "replies": [{"id": "j1x4763", "text": "Do you do ground up development?", "replies": [{"id": "j1xhmy3", "text": "Yes. Please send me a DM with more details. \n\nThanks", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1vw8ob", "text": "What asset type is it?", "replies": [{"id": "j1w3w6h", "text": "It will be retail with multiple tenants within a city boundary,", "replies": [{"id": "j1wibgb", "text": "City population? Still lots of variables!", "replies": [{"id": "j1xc38a", "text": "It will be in Dallas/Fort Worth/Arlington/Austin/Houston area", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1vxexq", "text": "Things to lead with: What state, what type of prop/units, purchase price, your scores.  To answer your question, there are lots of lenders that lend based on DSCR, even STATED DSCR.", "replies": [], "depth": 1}, {"id": "j1wblos", "text": "Dial in the numbers on the potential deal you are looking at, and then reach out to your local lenders and talk with them.\n\nThey will absolutely give you feedback as to their parameters, what they are looking for, and what they might be willing to loan on.\n\nDon't limit yourself to just banks, check in with credit unions as well, they have been pushing into commercial loans more actively and maybe a good local resource. CU's can be or hit and miss depending on their appetite for the commercial space, but I've done two recent deals through them, a six and a seven-figure loan, and it went really well.", "replies": [], "depth": 1}, {"id": "j1wpep9", "text": "Generally speaking, and assuming good financial health of the borrower, most smaller retail properties are financed with around 25%-35% down. If you\u2019re willing to put up half and you look good on paper I don\u2019t see any difficulty getting financing. Especially if the city is large and there are a number of lenders.", "replies": [], "depth": 1}, {"id": "j1x43f6", "text": "With 50% down cashflow shouldn\u2019t be an issue.\n\nI inboxed you my lenders number. Hope it helps.", "replies": [], "depth": 1}, {"id": "j1xh8hb", "text": "In general, if you aren't vastly overpaying, an income producing property should cash flow and be financeable at a 50% LTC.", "replies": [], "depth": 1}, {"id": "j1xn9ti", "text": "Commercial lender here. \n\nAs others have mentioned, 50% down eases up some other underwriting factors. If the property produces positive cash flow and you\u2019re personally not a schmuck, you should be fine getting it financed.", "replies": [], "depth": 1}, {"id": "j1ytn2a", "text": "Current BDO here and former commercial underwriter. I can lend in Texas. Feel free to DM me and I'll do the analysis on the rent roll if you like.", "replies": [], "depth": 1}, {"id": "j1zq5id", "text": "Of course it does depend on if you can provide the documents that \"conventional\" lenders want, right away OR you can look at low-doc or No-Doc loans right out the gate.\n\nOf course the rates will be somewhat higher, yet if you only want to keep the loan for a year or two until things come together, it might be a viable alternative for you...", "replies": [], "depth": 1}, {"id": "j20w8fz", "text": "Get yourself somebody with experience to go in as a GP or an LP Believe me this will help you greatly", "replies": [], "depth": 1}, {"id": "j20wzc5", "text": "General or limited partner it's very hard to break into this industry as a newbie you will do yourself a great deal of favor on expenses costs rates etc by having somebody with experience come in with you on your first one", "replies": [], "depth": 1}, {"id": "j2bvnzv", "text": "Try John Neufer. He's a commercial mortgage broker and also runs the Neufinance brokerage. \n\nIf he doesn't fund the deal himself, he will be able to connect you with the right broker.", "replies": [], "depth": 1}]