Equity in commercial property how to get cash form it

Commercial Real Estate Investing
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Equity in commercial property how to get cash form it

Paul Byers
Residential Landlord · Federal Way, WA · Member since 2012 · 3 posts · 0 votes

I have a commercial property worth 26Ok (my business runs out of it) and I want to draw out 80K to invest in RE.

1) What are the best type lenders to work with(Recommendations please)?
2) My credit score is in the low 700s what type of interest rates are we looking at?
3) What would the upfront costs be?

Thanks

Paul

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  • Johnny P.
    Real Estate Broker · Orlando, FL · Member since 2008 · 181 posts · 66 votes
    14y

    I'm assuming you want to stay in the building correct? Unless your company has a lease with the owner(you), I would say thats somewhat hurting the value as opposed to leasing that space up to a tenant.

    I would talk to a local bank since the value is under 500k.

    I would also recommend having a local commerical broker do an opinion of value for you so you can use that in your negotiations with the bank. Best of luck!

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  • Paul Byers
    OP
    Residential Landlord · Federal Way, WA · Member since 2012 · 3 posts · 0 votes
    14y

    Yes I'm staying in the building until I can sell the business and the building together. Yes my company has a lease with the owner(me). So small local banks are the way to go for this kind of transaction? I will look for a local commercial broker also. Any other ideas?

    Thanks

    Paul

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    1) What are the best type lenders to work with(Recommendations please)?

    As mentioned, local banks are a good starting place, but they don't have to be small. Even Chase will do small owner occupied CRE.

    2) My credit score is in the low 700s what type of interest rates are we looking at?

    For OO CRE, I just got 2.99 fixed for 5 years. that's the lowest I've heard of for CRE.

    3) What would the upfront costs be?

    I rolled all my costs into the loan, so they could be zero. This was a from local/regional bank

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  • Darryl Dahlen
    Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
    14y

    Given the small loan amount this is definitely a local bank/credit union deal. Most banks have aggressive programs for smaller CRE deals so providing your numbers are above board I don't think you'll have too much trouble with this.

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  • Ben Schembri
    Haiku, HI · Member since 2011 · 50 posts · 19 votes
    13y

    If you own commercial property free and clear how much can you take an equity loan for? And also who would it be through? I would use the equity line to purchase multifamily.

    Appraised building is about 400,000.

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