Need help with commercial property loan

[Abe Yuen]

Hi there everyone,

I recently sold my business a few month back and I am currently looking to purchase another couple properties. Ideally I would like to purchase my first commercial property and also another residential rental (SFH).

I am running into some obstacles and hurdles when speaking to the larger banks for commercial property loan financing, seems like because I already have 2 properties under my name/credit its effecting my Debt to Income Ratio too high for their terms even though since I sold my business I have set aside a good amount of funds for a cash down payment so I am just trying to see how much the max I can be prequalified so I can start shopping around and making bids for different commercial property options. 

Also I haven't even brought up the fact that since I sold my business I do not have a current income even though I can still provide my last 2 years tax returns if that helps.

Since this will be an investment and rental property, I was under the impression that as long as I had roughly 30%+ downpayment and the financials looked good for previous rental income/numbers that it should not be impossible for me to be able to get financing based on the merits of the actual property and my cash down payment...regardless of my current debt to income and income situation.

I still receive my monthly VA benefits and have rental income from one of my vacation rental properties I own but I don't think they will count that income until I file it as part of my tax returns.

Can somebody please help me come up with some options for commercial or investment loans for my situation, I would really appreciate it! I feel like I've been spinning my tires trying to lock down my next rental property for some passive income now that I am trying to make a move into real investing full time or at least having some additional passive income streams.

[John Warren]

Hi @Abe Yuen

If you are looking for a national lender, I recently used US Bank to finance my two 5+ apartment deals. The terms were attractive, and they seem very focused on the deal to underwrite whether or not to give the loan.