I'm looking to buy the remainderman interest in a commercial office space in CA. My non-real estate business will occupy about 3/5 of the sq footage so normally an SBA 504 would be ideal. However, I need to get the deal done primarily pro forma. The property has a lot opportunity for me to add value that is presently untapped beside the tax and other be fits to myself.
This is because the first two years of my corporation's operations I only operated on the side of my primary job. Last year was the first full time year devoted to it so last year we only made a very slight profit on my returns. This year I have we grow significantly and I now have NOI to afford the property. So I meet the metrics of the 10-15% down, and the 1.25 DTI, but I don't have the tax returns to prove it, all I have is the current balance sheet, P&L, a business plan, and my projections.
What is the smartest way to get financing? The big banks already said no due to relying on pro forma. So I'm looking at smaller local banks who will probably give me less ideal terms. I can probably tap family for money for now, and also I believe I'll be able to qualify for a better loan in 18 months assuming the world doesn't implode. Thoughts?
