All Forum Posts by: Account Closed

Well....kinda.

Far more options to finance commercial.  We all know it differs from residential, a totally different animal because 1) each commercial asset classes varies greatly. Parking lot vs. multifamily vs. office towner, different asset class means a different lending requirement because the collateral operates and cash flows differently 

2) The lender considers the end user- an owner, a tenant, a spec build or whatever 

3) Private lending, hard money lending is the seller holding any paper? (owner financing), if yes, then what's the note terms?

4) How is the partnership organized? I'm assuming an entity but is there an operating agreement? personal recourse? a lender wants to see this. 

5) What kind of lender are we talking? local bank that services their own portfolio? Large national that has their own guidelines. While we are at it, it the property eligible for tax credits or incentives? 

All these are factors for lending approval that will determine rate and terms of a loan. 

I'm a commercial agent and working on several warehouse deals in the urban core of Louisville. Unlike retail, office the industrial asset ranges SIGNIFICANTLY. There are dozens on considerations from zoning to interstate access just to mention 2 biggies. 

However,  it can be a great investment if you make smart choices. 

you're probably not going to get all the docs you request. Be prepared for seller to stall, send outdated, inaccurate data and goose-chasing. 

my due diligence shortlist includes but not limited to- seller's Schedule E of 1040, copies of operating income statements for previous 2 years, rent roll, lease agreements, insurance binders, utility invoices, vendor service contracts, warranties, old inspections, survey.

I'm sure someone replied with similar advice but if the remodeling job is well constructed, solid and safe then it's a matter of finding a well qualified tenant that complies and communicates well. It can be done.

2nd tier cities in the Midwest - specifically Ohio cities like Cincinnati, Columbus and Dayton. Louisville or Lexington, Kentucky.