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Updated 21 days ago, 12/05/2024
Looking for DSCR loan in rural Idaho
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
Hey @Craig Parsons! Sorry to hear about your situation - I hear a lot of similar horror stories from my clients with their past experiences with banks/credit unions. Where is the property located and what is the current value in your opinion?
Quote from @Jaycee Greene:
Hey @Craig Parsons! Sorry to hear about your situation - I hear a lot of similar horror stories from my clients with their past experiences with banks/credit unions. Where is the property located and what is the current value in your opinion?
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
This one is going to be a very challenging deal, as most lenders do not want to lend on a Rural Mixed-Use property. What is the commercial sqft and residential sqft?
- Erik Estrada
- [email protected]
- 818-269-7983
#1 Classifieds Contributor
- Lender
- Austin, TX
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
DSCR for Mixed Use is already really hard and then on top of that adding Rural its really going to be tough sledding.
How many total units (breakdown by Sq. ft and units resi vs. comm)?
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
Hey Craig,
I want to help! Sent you a DM
Quote from @Erik Estrada:
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
This one is going to be a very challenging deal, as most lenders do not want to lend on a Rural Mixed-Use property. What is the commercial sqft and residential sqft?
3500 dedicated to Residential 2500 dedicated to mixed use
Quote from @Robin Simon:
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
DSCR for Mixed Use is already really hard and then on top of that adding Rural its really going to be tough sledding.
How many total units (breakdown by Sq. ft and units resi vs. comm)?
5 residential units 2 store fronts and 1 storage space I rent
#1 Classifieds Contributor
- Lender
- Austin, TX
Quote from @Craig Parsons:
Quote from @Robin Simon:
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
DSCR for Mixed Use is already really hard and then on top of that adding Rural its really going to be tough sledding.
How many total units (breakdown by Sq. ft and units resi vs. comm)?
5 residential units 2 store fronts and 1 storage space I rent
Is the rent from residential in total more than the commercial? might be able to help here, what city in Idaho?
Quote from @Robin Simon:
Quote from @Craig Parsons:
Quote from @Robin Simon:
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
DSCR for Mixed Use is already really hard and then on top of that adding Rural its really going to be tough sledding.
How many total units (breakdown by Sq. ft and units resi vs. comm)?
5 residential units 2 store fronts and 1 storage space I rent
Is the rent from residential in total more than the commercial? might be able to help here, what city in Idaho?
residential rents $3550 Commercial rents $2550
Got it, @Craig Parsons. Have you talked to any PMLs that lend in Idaho?
Quote from @Jaycee Greene:
Got it, @Craig Parsons. Have you talked to any PMLs that lend in Idaho?
Have you tried this group: https://nwprivatelending.com/hard-money-loans-we-offer/comme...?
Quote from @Jaycee Greene:
Have you tried this group: https://nwprivatelending.com/hard-money-loans-we-offer/comme...?
I will now Thank you!
Follow up question here. I have one "offer" on the table. The thing is they want me to pay for an appraisal, which seems fair enough. thing is though this appraisal is nearly $5000.00 so before I pay for that what guarantees should I have?
Quote from @Craig Parsons:
Follow up question here. I have one "offer" on the table. The thing is they want me to pay for an appraisal, which seems fair enough. thing is though this appraisal is nearly $5000.00 so before I pay for that what guarantees should I have?
@Craig Parsons Given it's a "commercial" appraisal, while it seems a little high, it's not out of the ballpark. What kind of guarantees are you thinking? My only thought is you may want some consideration to be paid at closing to reimburse you for part of the cost of appraisal. If you don't do a deal for whatever reason, you can use that appraisal in future negotiations.
Quote from @Jaycee Greene:
Quote from @Craig Parsons:
Follow up question here. I have one "offer" on the table. The thing is they want me to pay for an appraisal, which seems fair enough. thing is though this appraisal is nearly $5000.00 so before I pay for that what guarantees should I have?
@Craig Parsons Given it's a "commercial" appraisal, while it seems a little high, it's not out of the ballpark. What kind of guarantees are you thinking? My only thought is you may want some consideration to be paid at closing to reimburse you for part of the cost of appraisal. If you don't do a deal for whatever reason, you can use that appraisal in future negotiations.
@Craig Parsons OK, now I understand. If you're dealing with a bank (or different credit union), they should be able to provide you with a loan approval "subject to a satisfactory appraisal". This will require a lot of up-front work on your part to answer all of the lender's underwriting questions that takes everything else into account.
I'm a former banker and know how their processes work with "subject to" approvals, so I'll defer to other HMLs and PMLs on this Forum to share if this is the case for them.
As for the "exact fees and costs", those won't officially be known until a few days before closing. However, a good banker will be able to give you a conservative estimate of what those fees will be.
A lender is not going to completely guarantee they will fund if the value comes back because there are always unforeseen complications that could arise such as title issues. However, they should be able to give you a good faith estimate that includes all of the fees and charges. At that point they should be committing to funding your loan if the value comes back as needed and there are no other issues.
If your other funding doesn't go through, please DM me and I can help.
- Bobby Feinman
- [email protected]
- 757-333-4663
So this is what I got from a HML as a reason for denial
The leases all started as 6 months or a year most tenants stay a long time we have two that have been there 5 years or more. We did have two move out and we had one unit moved in 5 days later and the other 14 days later so M2M has not been an issue. I could probably get all 1 year leases but that holds back our rent raising ability for 12 months and I dont think it solves the other three issues.
Not sure what they want for HIGH quality commercial tenants but one has been there 3 years and the other just moved in because we just put the space on the market but both pay fair rents on time.
I'm only trying to get what I owe on the building but I have raised the rents 3 x and raised the income infinitely since it was not making money when I bought it and my original Owner contract was interest only. Do I need to ask for less money and make up some difference myself?
Quote from @Craig Parsons:
So after being strung along by a local credit union for 3 months my long term financing fell through on my fully rented and rehabbed mixed use commercial/residential building. Now I am in need of someone who can provide a true DSCR loan. Every bank I have talked to so far wants to include my personal income in the cash flow. This is a 2 story building with apartments upstairs and retail shops downstairs. NOI is $3500/month currently although it was only $3100/month officially for the last 12 months as all of the upgrades were not complete and it was not fully rented until August of 2024. Please post here or DM me if you want my business.
Hi Craig, we understand how frustrating that experience must have been. We'd be happy to help and can provide a DSCR loan tailored to your needs, focusing on the property's cash flow, not your personal income. Let's connect to discuss the details and find the best solution for your building. Feel free to DM us!