Commercial Lenders in Austin TX

[Shiva Eak]

Dear Real Estate Experts,

I'm looking for commercial lenders (not private lenders) in Austin Tx, who are good at terms and rates. Please advise. Thanks in advance!

Thank You

Shiva

[Joel Owens]

A retail shopping center in Texas for 500k would likely be a real dump. Credit lenders won't touch such a property. It will likely be a local bank and expect if getting a 300k loan etc. or even 400k for loan rate to be high, amortization shorter, and personal guarantee on the property. The local banks will likely want (boots on the ground) and the owner to be in Texas.

Most capital markets mortgage brokers won't do a loan less then 1 million and most not less than 2 million.

If you go after such a small property make sure the cap rate purchase is really high to offset the higher debt rates so a  healthy cash on cash spread is maintained.

As for Austin Texas retail centers the minimum go for about 2 million and up into the tens of millions. You might find something for 500k in weak suburban area not in Austin but out in the boonies type areas and again only a local bank will want to touch that. 

I look at about 1,000 retail properties a week for client nationally. Most retail brokers will not touch a 500k property as it will likely have mom and pop tenants, heavy underwriting for due diligence, hard to source debt, and a tiny paycheck 15,000 likely in the best case situation. As a principal broker and owner of my company I would keep the 15,000 but typical brokerages with teams about half 7,500 would go to the company and the remaining 3 brokers would split the 7,500. Person at top probably 4,000, middle agent 2,500, junior agent 1,000. It's simply not worth the time.

You would likely need a local mom and pop type broker that did residential, land, small commercial etc. and was willing to take that on.

Good Luck