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Updated over 3 years ago on . Most recent reply

User Stats

98
Posts
61
Votes
Sean Monahan
  • Real Estate Agent
  • 21224
61
Votes |
98
Posts

Commercial loan repercussions for residential loans

Sean Monahan
  • Real Estate Agent
  • 21224
Posted

Hello community and thank you in advance for responses.  I have a client, who was recently divorced thus taking a hit on their credit.  The client is a friend and has a business.  They are having trouble getting approved for a loan for a new commercial space.  I've looked at their P&L statement and their finances and know they could afford the property they are looking at.  A potential solution is I take out the commercial loan on the property with my finances and credit allowing me to do so and she rent from me potentially in the future setting up a lease purchase or even flat out purchase when their credit improves.  My question is how will this impact my ability to purchase more residential investments and obtain financing for those properties while showing minimal cash flow on the commercial property?

Again thank you BP community and see you at the conference!

  • Sean Monahan
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