Does anybody know how willing banks are to secure loans to buy commercial real estate with the real estate itself? What kind of guarantees might they need? What if the commercial real estate has a lease already on it?

Any help would be great. Thanks.

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Posted by I Love Bama

Alabama

Member since Nov 2007

37732 posts

Posted on 3/21/13 at 6:22 pm to ShreveportTIGER318

This is very general but

A 1.4 dcr
25 percent down

YmMV

This post was edited on 3/21/13 at 6:25 pm

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Posted by tigerrocket

Member since Aug 2008

162 posts

Posted on 3/22/13 at 9:44 am to ShreveportTIGER318

If it is free and clear and has a lease that supports the expenses, it should not be a problem. If it isn't free and clear, then you probably need at least 30% equity including the cash out. Try the smaller banks and homesteads.

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Posted by LSURussian

Member since Feb 2005

126963 posts

Posted on 3/22/13 at 9:47 am to ShreveportTIGER318

quote:
Does anybody know how willing banks are to secure loans to buy commercial real estate with the real estate itself?

The short answer to your question is banks do it every business day.

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Posted by Tiger4Ever

Member since Aug 2003

36703 posts

Posted on 3/23/13 at 2:06 pm to ShreveportTIGER318

quote:
Does anybody know how willing banks are to secure loans to buy commercial real estate with the real estate itself? What kind of guarantees might they need? What if the commercial real estate has a lease already on it?

Any help would be great. Thanks.

As Russian said...every damn day.

If the property is held in a corporate name then you(and any other principals) are going to be expected to guarantee the debt.

A long-term lease to a strong tenant that provides a comfortable dscr would definitely be a plus.

What type of property is this?

This post was edited on 3/23/13 at 2:09 pm

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