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Updated over 4 years ago on . Most recent reply
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Loan option strategies on commercial property with a partner
I am doing my homework and seeking advice/feasible loan options to pursue when partnering with someone to acquire a commercial warehouse type property. The property needs to be in Los Angeles, estimating $1.2-$1.5mil at least 10,000sqft. The intent of the property is to secure a larger space for the expanding business and then rent out the remaining space to other businesses.
Partner A: Owns and runs a business, has comfortable consistent cash flow to sustain estimated payments for such a property but minimal credit history.
Partner B: No purchase history of any property, w-2 income, excellent credit score with long history, zero debt.
Bringing high cash flow and excellent credit together between two individuals, what are some strategies and loan options you would suggest to acquire such a property?
As a private/hard money lender, would this scenario interest you, why or why not? What details influence you in pursuing a deal and what makes you look away?
Cheers!
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- Attorney
- Dallas, TX
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Pretty typical Borrower set up, IMO. Just have a good partnership agreement, the Part B has asymmetric risk on this.