Funding for small commerical unit

[Jeffrey Ascough]

I'm having a very difficult time securing long term funding for a small (1,250 sq ft) commercial unit in NJ. The unit is currently rented at $1,950 and I am purchasing for $187,900. Curious if anyone has any advice as to getting a loan to an LLC for this property. Spoke to many different mortgage brokers all coming back with a 7+% rate. Banks that I've been to will not fund this currently. Thanks for any help or feedback!

[Aaron Caddel]

PLEASE do not allow a temporary interest rate to stop your deal. If it's really a steal and you do not have the money, then I'd recommend getting a first position loan (preferably private to avoid points and ability to exit without penalty whenever you'd like) to buy in cash and the just refinancing after. If you did that for 6 months before seasoning into a refi, then what's the big cost to you? Six months from now you're potentially cashflowing $600+, so who cares about your short-term interest rate.

Additionally, I'm presuming in ALL of this that you have no equity/notes that are movable with your other investments (because that'd make this even easier to complete). Cash is easy mate, I'd take 8% ROI as a first position on a home ANY DAY, even if you only gave it to me for a few months.

Congrats on the deal you found! Sounds like this is a phenomenal investment.