Closed on units 11 and 12

[Evan Bellingar]

Well BP:

My wife and I closed on units 11 and 12 yesterday!

This property was interesting as it was a large, grand single family house on a big lot that also has a nice manufactured home on it. The manufactured home made it hard to finance and I think it scared some buyers off. 

We did our first commercial loan to close it, and the process was actually much easier than previous loan applications. 

Purchase price of $281,000 about $10,000 in repairs needed, and total rents should be about $3,000. For a suburb of Portland Oregon, a great deal. 

How about that?

Evan 

[Evan Bellingar]

Originally posted by @Account Closed:

Congrats @Evan Bellingar!  May I ask, how did you do a commercial loan for what amounts to just 2 units?  I thought commercial loans had to be 5+ units?  

I've been looking for a small commercial apartment building because a commercial loan is easier to underwrite than a residential one.  If you have any tips about using a commercial loan for less than 5 units and/or if you can recommend a good local lender who does that, I'd welcome your insight.  

I haven't been to Newberg much, but it intuitively feels like a good investment --> Newberg : Portland as Napa : San Francisco circa 1995.  I lived in Napa in 1993 when it was still a sleepy almost bedroom community.  Now, it's all grown up with fancy restaurants and trendy music festivals and pricey tourist traps.  People who bought property there back then and held onto it are doing very well.   

 Hi Dani,

With the manufactured home on the lot, a commercial loan was my only option, apparently. The rates were higher(5.6%), and the amortization is on 25 years, but underwriting was a breeze and closing costs were surprisingly low. 

This was our first deal with Bank of the West and our lender Sara Ardeshiri, but we hope to do a lot more. 

Agreed! I work in the wine business here and I hear people say all the time "this reminds me of Napa 20-30 years ago". We like Newberg/Sherwood as they are closer to Portland, but Dundee and McMinnville are great wine country towns as well. The secret of amazing Oregon wines is getting out!

Evan