All Forum Posts by: Julie Fishman

I would walk the neighborhood you like, go inside any places you like and ask to speak to the owner of the property and see if they are interested in selling.

We just closed a $2,680,000 refinance on a newly constructed, Single Tenant NNN, Mountainland Supply facility near Salt Lake City Utah. 3.95% for a 5+5/30, no PPP @75% LTV. The appraisal for this deal came back at 15% below purchase price due to a lack of suitable comps in the area, and a discrepancy on what true market rent for the space would be (despite the 10 year lease already in place.) We sourced a lender with tremendous experience in the area, who was willing to stretch and get the deal done.

PM me for a referral, I sent you a connect request as well.

Do yo have a deal in play or trying to pull one together? Our clients usually fund through insurance companies or banks with very favorable terms. PM me if you would like to set up a time to talk.

Jennifer - There are special loan programs that SBA qualified lenders can offer, I am not an expert in this area. Does anyone else have an expertise in SBA commercial and construction loans?

James - There are insurance companies and banks that will lend up to 10 years but that LTV is an issue. To get a better deal you may need to get to 75% or lower in underwriting and for the rehab you will need to show a lot of cash flow and liquidity to cover those costs. There is the option of a shorter term construction loan that rolls in to a permanent fixed rate loan, but again, the LTV will need to come down. Feel free to call me if you would like to discuss the details of your deal. My contact info is on my BP page: https://www.biggerpockets.com/users/JulieF14

Omar - There are no guarantees of course, but it could depend on your whole package. Lending institutions are sometimes willing to look past a personal low FICO (in the 600's) or bad marks on your credit if your business practices look good. They will also be looking for a low LTV and Operating Statements that will support a loan. It may not be completely hopeless if you have these other things in your favor.

For commercial transactions it is standard to ask for personal financial statements and, when available, for operations statements, if those are not available then proforma or projected statements are used. It is typical to request 3-5 years of operating statements and last 3 months of personal statements. Your instinct is right that you need to be sure of their liquidity and other financial transactions that could interrupt your deal.

My suggestion: don't be stressed, be excited. It is the art of the deal. Get with the tenant in a timely manner in 4 years to see if they want to extend, if not you will have time to secure a new tenant. Then consider a 10 year loan next time from an insurance company instead of a bank. I can help you when you get to that timing. 

Are you happy with the loan you got? Depending on how much you want to take out in addition to the first loan you may want to consider going back to your lender for a line of credit based on the improved status.