All Forum Posts by: Craig Parsons

So this is what I got from a HML as a reason for denial

Most all of the leases are currently month to month or approaching the end of their terms.

Commercial tenants are of low quality.

The requested loan amount approximates the original purchase price of the property (I understand that you have made some improvements to the property).

The location is remote (this is just a factor, not the deciding factor).

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 @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.

I want a guarantee that if the appraisal comes back at what value we need it to come back at that I will in fact be given a loan and what the exact fees and costs will be.   Is that unreasonable I truly do not know what the standard is.

This is a follow up post to one I created yesterday regarding a DSCR loan. I have someone offering me a bridge loan to help solve my immediate needs however they want me to pay nearly $5,000 for a MAI commercial appraisal. Even though the price was shocking to me I do not have an issue with paying for this if needed. My question is what guarantees should I expect before paying? Obviously if the value is low that's one thing, but what if I pay and they deny me for some other reason?

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 @Jaycee Greene:

Have you tried this group: https://nwprivatelending.com/hard-money-loans-we-offer/comme...?

 I will now Thank you!

Quote from @Jaycee Greene:

Got it, @Craig Parsons. Have you talked to any PMLs that lend in Idaho?

I've talked to anyone I can find online or through contacts but have not been able to find any PML as of yet

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

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

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 @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?

Property is in Orofino ID zip code 83544   Approximate value 500k. No one can ever tell me a cap rate for the area  but if I use current Rents and a NOI of 4k per month it would be worth $533,000 at a 9% cap rate.   I am only looking to get a maximum of $335k out of it or a minimum of $250k.  I just re looked at my spreadsheet and the current NOI is $4k not $3500