All Forum Posts by: Ashvin Dewan

Thank you for the prompt responses. Also just for clarification, the property I am alluding to is in Washington, D.C. 

@Kerry Baird I will reach out o Karen.  Thanks for the contact. 

Hello all. I am relatively new here, but thought i'd give this a try. I have searched the forums and could not find the answer to my question directly...

Basically I wanted to investigate the feasibility of a commercial loan refinance with cash out. We have a unique situation with our family business where we have had some tough personal circumstances that have impacted our business this year. Good news is things are getting better, but the bad news is, we are behind now on our tax payments for a property that has appreciated tremendously over the last ten years. The loan note we have is a 10 year loan with 20 year amoritization for 1.25 million. The property if it was appraised today, due to some very fortuitous neighboring developments, is now conservatively around 8 million. Would there be a way to refinance the property and get some cash out to pay some of our debts like the accumulated property taxes or credit card debts? Or am I being naive? I figured standard lenders would probably want the taxes paid before a refinance. Is my option only private lenders? We would ideally like to pull out about 300k to help clean the slate for us. The other problem I imagine with a commercial loan is demonstrating the viability of our income stream for our business. We are a seasonal business with lots of fluctuation. I imagine they would want us to demonstrate some source of continual income and probably produce tax statements. I imagine that would be a hurdle for us to get the financing. 

Just to be clear, our goal really is to stay in the property for as long as possible and hopefully sell it in maybe 2-3 years. Our hope was that if there was a cash our refi option that could buy us time, and we would want to pursue that. Maybe the better alternative is just getting a private lender loan for the cash we need....

Hopefully some of you bankers can chime in and offer some advice. I am sure you are lacking some of the information needed, so please let me know what else I can provide you with. 

Thanks in advance. 

Any of you have a recommendation for a good commercial broker for industrial type properties in Washington D.C.? I think it would be helpful for me to speak with someone familiar with the market. 

Thanks

And lot is also about 15,000 sq ft too. 

Closest major intersection would be Potomac Ave and Capitol St. The nationals stadium is within 0.5 miles of the property. Is that SW DC?

Hello. Been trolling these forums for a while and finally decided to tap the collective knowledge of the BP community. Here is my scenario that I have been pulling my hair out trying to sort. It is a good problem but given my lack of commercial real estate experience, I have had a hard time judging my options. 

Essentially my father has a small business that he started many years ago along the Anacostia river front in Southeast quadrant of Washington DC. He established his business in that area when it was mostly an industrial and unsavory part of town. Fast forward to today, his place is now square in the path of development sandwiched between the nationals stadium and soon to be constructed DC united soccer stadium. In the last few years a business improvement district has been formed and many plans are in the works to redevelop the area as Washington DC's next prime waterfront (see capital riverfront plans here: http://www.capitolriverfront.org/). 

While this is all very exciting, you can imagine with each passing year the property tax has been shooting through the roof. As a small business he can envision the day where the property tax rises to the point that continuing to do his business there will no longer be tenable. Anticipating this to occur within the next 6-7 years, we began discussing possible strategies for business relocation.

Here are some facts on the property

• 15,000 sqft of industrial warehouse type space with 40+ft ceilings with two loading dock access points
• 3,000 sqft of finished office space
• 10 parking spaces out front
• Dad spends about $10k/month for insurance and the mortgage note on the property
• Building is lacking a fire sprinkler system-- to bring up to code to get a certificate of occupancy we estimate it would probably take $80k-125k to get that retrofit and make suitable for leasing 
• Currently property taxes are about $70k annually
• neighboring properties have sold for anywhere from $400-500/sq ft. 
• neighboring leases seem to have been advertised anywhere from $12-22/sq ft NNN.
• pay off on mortgage is about $1.3 million. 

We are struggling trying to determine whether its worth selling now and moving on, or trying to get a tenant for the property to buy another 5-10 years before attempting to sell once the DC united stadium construction is finished (estimated 2018) and the surrounding infrastructure and waterfront improvement plans are realized. 

I am sure there is substantial information in my description that may be lacking to help sort this out. Part of the problem is I don't even know what other information is relevant. The other problem for us is we don't have very much capital available and probably don't have enough cash flow to justify someone giving us another loan. I would be interested in hearing about any creative financing strategies that someone might be aware of or if anyone else has had to wrestle with similar circumstances. I don know if this would discourage potential tenants, but we were thinking we might have to offer a lease discount so the tenant could make improvements as they see fit since we don't have much capital resources. Our other great unknown is we are not certain if we could even find a tenant. I hope someone on here has some experience in that Washington DC submarket of the Southeast capitol riverwaterfront. Would love to hear their thoughts on selling vs leasing. Please excuse my lack of knowledge. Let me know what additional information could help you out. 

Thanks again and sorry for the long post!

A vote for rentshare.com. I have used them for 2 years now without a hitch. That have some nice features like automatic late charges, invoicing, etc. For one lease it is free to the landlord. As you add more properties there is a monthly fee associated, but its nominal. If you are just doing one SFH, rentshare is a great place to start.

I think their fees are $1.95/transaction or 2.9% for credit cards.