Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago,

Account Closed
  • Chicago, IL
8
Votes |
36
Posts

Commercial Mortgage Advice: Balloon matures next year

Account Closed
  • Chicago, IL
Posted

Need some advice friends... My back is against the wall on this one.  Any ideas would truly help.

The Facts:

  1. I have a mixed use 2 unit commercial property, i bought it in 2007 during the boom for 500k
  2. 2nd floor is a 4 bedroom residential
  3. 1st floor commercial storefront space with full basement with 3 car connected garage on 1st floor ground level
  4. Total of 5700 square feet
  5. I owe 399k and the value is about 800k.
  6. I put in 150k within the last 2 years
  7. My balloon matures in April 2017
  8. Credit score is at 700
  9. S corp grossed 199k last year 2014 and 2015
  10. Building is under my name personally not in an LLC
  11. Originally financed by Lehman Brothers
  12. In Chicagos Lincoln Park Neighborhood, very good area

The Problems:

  1. Have been denied twice this month.
  2. Filed for chapter 7 bankruptcy in 2011
  3. Current servicer will not extend the loan
  4. Have nobody to cosign for me
  5. Completely empty currently, (no tenants, lease was broken last month)
  6. Was doing vacation rentals (Airbnb) in 2nd floor apartment, (banks do not care for this)

The Solutions:

  1. Sell the building
  2. Refinance, extend terms preferably 10 year
  3. Start a business in commercial space (Day Care, Event Space, Tavern). Will owner occupied business give me better chances of refinancing?
  4. Search for investment partner in businesses above to occupy the space together
  5. Creative financing: For instance; get investor or partner to take out loan and pay off 399k and get 50% equity stake in real estate?
  6. Get permanent tenants for commercial and residential space. 3500 +2500 = $6000 monthly, try refinance again.
  7. Any other deals to pitch to investors?

If anyone has any other questions please feel free to ask. Really seeking some real world advise. Thank you

Loading replies...