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Commercial lending practice
I have done single family BRRRR and am familiar with the process. I stumbled across a deal on commercial property and I want to do the same strategy. All of the commercial lenders I have talked to have told me they will only lend me 70% of invested money (purchase price plus rehab costs). The new appraised value does not matter because commercial real estate is volatile and they want me to have 20% real money in the investment. There has to be a way to do this. What are some creative ideas? Here are the numbers. Purchase 250k 80k rehab. 330k total cash invested. I would need a 475k evaluation after to get all my cash back out. I believe the property to be worth that after rehab.