Commercial Lending - Small Business / Commercial real estate

Member since 2022 · 11 posts · 7 votes

Actually this is Sarasota area - I wasn't anticipating getting in to the commercial space but an opportunity came up and so I went with it. The first load went OK but I just have another opportunity in hand and trying to find another commercial lender. One think I have noticed is that commercial lenders don't like small loan amounts - I am looking for $137K with 20% down. So I need a small commercial lender. Any recommendations welcome - or creative financing ideas. I could pay cash but would leave me tight and need some wiggle room

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Damian Callaghan

Member since 2022 · 21 posts · 7 votes

Quote from @Bonnie Griffin Kaake:

@Damian Callaghan Have you considered doing cost segregation on the other properties you own? It is like getting a free loan from the IRS. If you didn't have Federal taxes to pay on the other properties it just might give you some wiggle room for further investing and leveraging what you do have.

this is new to me. I will have to investigate this further to better understand how it could help

thanks for the suggestion

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Damian Callaghan
Try a private lender, reason do not like those loans is cost to underwrite is not cheap and and for loans under $250k or $500k are not worth it
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Damian Callaghan
Member since 2022 · 21 posts · 7 votes
3y
Chris - thanks for the recommendation. How would one go about finding a private lender?
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Scott WolfPro Member
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
3y
Quote from @Damian Callaghan:

Actually this is Sarasota area - I wasn't anticipating getting in to the commercial space but an opportunity came up and so I went with it. The first load went OK but I just have another opportunity in hand and trying to find another commercial lender. One think I have noticed is that commercial lenders don't like small loan amounts - I am looking for $137K with 20% down. So I need a small commercial lender. Any recommendations welcome - or creative financing ideas. I could pay cash but would leave me tight and need some wiggle room

Damian, why isn't your current lender interested? I'd be happy to try to assist with more info.

@Damian Callaghanundefined
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Damian Callaghan
Member since 2022 · 21 posts · 7 votes
3y
I was told the economy and ad I just acquired another property recently. And the value is small. But my credit and PnL is strong. I was informed the economy is making n lenders edgy with two loans in quick succession

Quote from @Scott Wolf:

Quote from @Damian Callaghan:

Actually this is Sarasota area - I wasn't anticipating getting in to the commercial space but an opportunity came up and so I went with it. The first load went OK but I just have another opportunity in hand and trying to find another commercial lender. One think I have noticed is that commercial lenders don't like small loan amounts - I am looking for $137K with 20% down. So I need a small commercial lender. Any recommendations welcome - or creative financing ideas. I could pay cash but would leave me tight and need some wiggle room

Damian, why isn't your current lender interested? I'd be happy to try to assist with more info.

@Damian Callaghanundefined

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Doug Smith
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
The reason lenders like us don't like small loans is that we're restricted on how much we can charge. If the loan is small enough, we can't recoup our costs to do the loan. 1% of $137K is only $1370, but it costs me about $1590 to do a loan like that in my costs. We typically set a minimum loan amount of $100K, but that's not a hard rule. Commercial Spaces are a different animal than residential. When I was a banker, I would do a loan at $137K all day long for a commercial space. I'm in Tampa and have been in lending and banking her for 27 years. Perhaps I can steer you to someone that might be able to help if we knew more about the specific type of space you're looking to finance. That will steer what I would recommend.
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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 665 votes
3y
What kind of business? Just curious?
[email protected]860-538-3672
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Dennis Muno
Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes
3y
Yes, usually commercial lenders finance deal in the $500k + amount. Have you considered looking in your area for hard money, investor, fix and flip, renovation, DSCRR lenders? I believe some will be willing to help you out.
Also, you should consider contacting a mortgage broker in your locality. Mortgage brokers usually are able to shop around and get bids from multiple banks and lenders and provide you with multiple financing bids from many lenders you could choose from. I would say you should consider these options
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Bonnie Griffin KaakePro Member
Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
3y
@Damian Callaghan Have you considered doing cost segregation on the other properties you own? It is like getting a free loan from the IRS. If you didn't have Federal taxes to pay on the other properties it just might give you some wiggle room for further investing and leveraging what you do have.
[email protected]303-475-4459
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Damian Callaghan
Member since 2022 · 21 posts · 7 votes
3y
Quote from @Bonnie Griffin Kaake:

@Damian Callaghan Have you considered doing cost segregation on the other properties you own? It is like getting a free loan from the IRS. If you didn't have Federal taxes to pay on the other properties it just might give you some wiggle room for further investing and leveraging what you do have.

this is new to me. I will have to investigate this further to better understand how it could help

thanks for the suggestion
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Damian Callaghan
Member since 2022 · 21 posts · 7 votes
3y
Quote from @Devin Peterson:

What kind of business? Just curious?

Happy to discuss further if you think you can service this loan. Direct message me
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