Commercial Lending

[Jason Graham]

I am looking to refinance an 8 plex apartment building with a laundromat attached to it.  I purchased the property at auction back in August using hard money, evicted everyone, fixed it and put good screened tenants back in.  I then rehabbed the laundromat with all new equipment.  The gross rents for apartments are $5725 and the Laundromat proforma put together by equipment manufacturers in the business shows another $4 to $6k of income.  I am $576k into the deal at this point and am looking for long term financing.  Any leads would be very helpful.  Thanks

[Jeff B.]

• The gross rents for apartments are $5725 and the Laundromat proforma put together by equipment manufacturers in the business shows another $4 to $6k of income. 
•  I am $576k into it

I have a problem with laundry yielding ~5k per year; that's 416/mon and that's a lot of dirty diapers!  Subtract the service lease and typical 50/50 split and . . . just so questionable.

Ignoring laundry, GSI is 68,700 and using a GRM of 10, the FMV would be in the neighborhood of $687k. You've got an apparent unrealized equity of about $100k.