Commercial Loans

[John Weir]

Hey guys I haven't posted anything in a while, took some downtime during the holidays. However, I've had a great deal placed at my feet early in 2016. It's approx. a 220 unit storage facility with about an acre and a half of growth opportunity. The ladies husband who owned it passed away and she doesn't care to deal with the hassle of the business. She hasn't given me a set price yet but I'm figuring around 4-600k for the units and land. It's not in the greatest areas in town but still a great investment. My question is what is the best way to go about getting a commercial business loan with only putting 10-15% down? I know most I've seen require 25+%, any ideas??

[Josh Anderson]

John,

I am a commercial credit analyst in South Dakota, and if I were you I would try to find a lender who has experience working the the SBA. Their 504 loan program is now available for storage facility purchases/refinances. I was actually just talking to one of our lenders about it this morning and I believe the SBA will go as low as 15% down and their rates are fixed for 20 yrs. This does depend on your financial strength but could be a good option if the current owner doesn't want to do a carry back. Best of luck with your purchase and pass some of that luck this way I've had a hell of a time trying to get a second facility in my portfolio.

Regards,

Josh Anderson