Laundromat/Mixed Use Remodel

[Cory St. Esprit]

I am owner of a building in a Class C City in western PA. We are working on finishing rehab on the apartments (a 1 bed 1 bath and a 2 bed 1 bath) and are working to turn the bottom floor into a laundromat. We are seeking a line of credit or remodel loan on the building to finalize the project. The building is worth $160,000 and we don't have any loans on it. We are seeking about $100,000 in working capital or a LOC for this project. Looking for a business loan that's not on a 1 year payback like most hard money. Maybe minimum 5 years?

[Robin Simon]

Quote from @Tim Delaney:

Have you spoken to any local banks? They should have business loan products to help you with the buildout and capital investment in the laundromat. If the business is 50% or more of the building there may also be SBA 504 funding opportunities at great rates.

Make sure you put together a solid business plan with projections. From my experience the commercial laundry equipment sales companies can help you with that - but be wary as their projections will be optimistic so you buy more equipment.

 I would agree with this - most of the lenders here are going to be real estate focused and residential real estate focused at that - for something really commercial or business, the best place to search is local banks or credit unions that can do tailored relationships and lending structures