Commercial Lending Requirements

[Dakota Gage]

When it comes to commercial lending will they approve you based on the income of a property or will they also take into consideration your debt to income ratio. My mother has a 7000 sq ft shop that isn’t being used as well as two mobile homes on the property that are bringing in $1000 combined that would be included. I’d like to convert the building to self storage units She is considering selling it to me for $50k to keep it in the family, but I don’t know my best option for financing in this case.

[Zach Quick]

@Dakota Gage on a $50,000 asset the bank is going to underwrite zero income and base it solely on your ability to pay the note without any income from the property. Especially if you are changing uses.

Can she owner finance it to you until you get more proven income from the property?