All Forum Posts by: Account Closed

Need some advice friends... My back is against the wall on this one.  Any ideas would truly help.

The Facts:

1. I have a mixed use 2 unit commercial property, i bought it in 2007 during the boom for 500k
2. 2nd floor is a 4 bedroom residential
3. 1st floor commercial storefront space with full basement with 3 car connected garage on 1st floor ground level
4. Total of 5700 square feet
5. I owe 399k and the value is about 800k.
6. I put in 150k within the last 2 years
7. My balloon matures in April 2017
8. Credit score is at 700
9. S corp grossed 199k last year 2014 and 2015
10. Building is under my name personally not in an LLC
11. Originally financed by Lehman Brothers
12. In Chicagos Lincoln Park Neighborhood, very good area

The Problems:

1. Have been denied twice this month.
2. Filed for chapter 7 bankruptcy in 2011
3. Current servicer will not extend the loan
4. Have nobody to cosign for me
5. Completely empty currently, (no tenants, lease was broken last month)
6. Was doing vacation rentals (Airbnb) in 2nd floor apartment, (banks do not care for this)

The Solutions:

1. Sell the building
2. Refinance, extend terms preferably 10 year
3. Start a business in commercial space (Day Care, Event Space, Tavern). Will owner occupied business give me better chances of refinancing?
4. Search for investment partner in businesses above to occupy the space together
5. Creative financing: For instance; get investor or partner to take out loan and pay off 399k and get 50% equity stake in real estate?
6. Get permanent tenants for commercial and residential space. 3500 +2500 = $6000 monthly, try refinance again.
7. Any other deals to pitch to investors?

If anyone has any other questions please feel free to ask. Really seeking some real world advise. Thank you

I am not denouncing anyone.  It just seems like my situation is too complex for anyone to touch or comment on.  Its a list of things and very complex.

The Facts:

1. I have a mixed use 2 unit commercial property, i bought it in 2007 during the boom for 500k
2. 2nd floor is a 4 bedroom residential 
3. 1st floor commercial storefront space with full basement with 3 car connected garage on 1st floor ground level
4. Total of 5700 square feet
5. I owe 399k and the value is about 800k. 
6. I put in 150k within the last 2 years
7.  My balloon matures in April 2017 
8. Credit score is at 700 
9. S corp grossed 199k last year 2014 and 2015
10. Building is under my name personally not in an LLC
11. Originally financed by Lehman Brothers
12. In Chicagos Lincoln Park Neighborhood, very good area

The Problems:

1. Have been denied twice this month. 
2. Filed for chapter 7 bankruptcy in 2011
3. Current servicer will not extend the loan
4. Have nobody to cosign for me
5. Completely empty currently, (no tenants)
6. Was doing vacation rentals (Airbnb) in 2nd floor apartment, (banks do not care for this)

The Solutions:

1. Sell the building
2. Refinance, extend terms preferably 10 year 
3. Start a business in commercial space (Day Care, Event Space, Tavern).  Will owner occupied business give me better chances of refinancing?
4. Search for investment partner in businesses above to occupy the space together
5. Creative financing: For instance; get investor or partner to take out loan and pay off 399k and get 50% equity stake in real estate?
6. Get permanent tenants for commercial and residential space. 3500 +2500 = $6000 monthly, try refinance again.
7. Any other deals to pitch to investors?
   

If anyone has any other questions please feel free to ask.  Really seeking some real world advise.  Thank you

Jeff Bridges

You are lucky they even financed you. My property is about a million and owe 400. They still say I'm not bankable.

I use Venmo for all of my tenants. PayPal actually just bought them, so it's the same company. The best about venmo? NO FEES

Does anyone recommend a real estate consultant? I need some serious advice on some things and nobody on bigger pockets has any idea how to help.

It's a liability, unless you rent out rooms like I do. My home makes me money so it's asset. House hacking is the new term right?Jonathan Spitz

I own a commercial property in one of Chicagos hottest neighborhoods. I've been trying to refinance and nobody will touch it because of my BK back in 2010 because of the crash. So now I have been forced to make some creative options for myself. What I am offering is for someone to get approved and pay off my balance of 399k and that would buy them 50% as an equity partner stake of the property. The building appraised at 825k, which is what I will be listing it on the market. I would rather keep it than sell it because over the years,but I will sell it if I have to. Would you take this deal?

My maturity date is approaching next year and I have a bk and everyone says im not bankable. What do you suggest I do if I can't refinance?

I have one commercial loan that I am refinancing and just go pre approved by Quicken loans for home mortgage.  I got qualified for 195k for an fha, 3.5 percent first time home buyer.  

The commercial refi is more important to me, but i would like to purchase a home for my family instead of renting.  Should I wait until I am done with the refi, or can I do it at the same time.

Thanks in advance guys

Thanks for the feedback. Guys.  I'm very new to this so bare with me.  

I bought the building ten years ago and I bought it because I had a cell phone store and was owner occupied and did not buy it as an investment property.  I lived upstairs from it for a while.   Ideally this would work for another owner occupied borrower.   

400k can get you other deals but not deals like this.  For example.  There is a condo right next door to my building going for 375k.  It's a one bedroom one bed with a parking space.  

I have two here twice the size of the condo and 3 commercial spaces downstairs.  A total of 5 units or 7500 square feet.  

Remember, this is commercial real estate.  It might not make sense for the residential guys.  

OR

I can just sell it for 800k and profit 400k. But I know the area will be worth more in 5 years from now so I would rather hold it.  If you owned it, what would you do? 

Sell?

Keep trying to refinance?

Partner up with some creative investing options?

Loan matures next year so I need some advice or even a professional consultation.   

Thanks in advance and appreciate your help. 

Omar