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I can understand your apprehension. There can be various fees associated with a commercial loan. But, these fees are largely the same as you would encounter on a residential home loan. You have appraisal fees, title fees, and lender processing fees. Our company always gives free loan comparisons to each potential client AND each one of these loan comparisons includes a mini-good faith estimate of closing costs.

First of all, your property would be classified as a mixed use property. And, it is a very unique one at that... due to the presence of a restaurant. Secondly, in commercial finance, loan terms and loan amounts are highly contingent upon property financials. Lenders want to make sure that a property can pay its own mortgage payments. If you want to get out at least 135K and the property is worth 390K you're going to need a 35%LTV(loan to value). I would have to see some financial figures on your property before I can determine whether it will support a 35%LTV. But, I can tell you that a 35% LTV is relatively small and your property should therefore have a very good chance of qualifying for such an amount. Also, all commercial loans are NOT 10 years only. Depending on the situation, we can offer 6 month adjustables or 1 year fixes. If you'd like more information please feel free to contact me via phone or e-mail. My company works with over 40 different lending institutions nationwide. If you can send me some financials on your property I can do some research among my lenders and send you a loan comparison that will include various options you can take.

Keefe Shanahan
Senior Loan Advisor

Hey Rocky,

I'm a commercial loan advisor that specializes in multifamily, 5 units and up. In addition, I'm a third generation member of a real estate family that now owns upwards of 15 multifamily and commercial properties. As for being an investor/owner, you can get involved as much as you like from a management standpoint. Some owners live in the structure and act as resident landlord, while others hire a competent management company and just checks in on their competency. If you start growing your portfolio even larger you can hire additional help. For example, my family has hired a CFO that personally handles our real estate portfolio. We pay him directly to oversee the property management companies that manage our properties on site. There are basically different ways of structuring yourself from an owner standpoint.
But, on a separate note, if you do want to venture into the commercial arena...it is important that you get the financing facts BEFORE you make an offer on a property. Commercial finance is largely contingent upon the cash flow of a property....so, it is important that you understand how a lender views your property so you will know how much down payment will be required to obtain it.

[email protected]

Hello Everybody!

My name is Keefe Shanahan and I am a Senior Loan Advisor at apartmentloanbiz.com. I'm here to help investors, real estate agents, & residential loan officers by extending advice and service in any way possible. Happy investing!

Keefe Shanahan
Senior Loan Advisor