Getting a commercial mortgage

[LisaR]

Hello!!! I thank everyone in advance for helping me, I have been working on my credit for the last year getting everything as perfect as I can before I walked into a bank to get credit pulled. I have been monitoring my credit through myfico and Equfax score is showing 708/ can anyone point me into the right direction to talk to or meet with a bank that will give me valueble information before they are so quick to pull my credit. I have been in the Early childhood field for the past 20 years and would like to purchase a daycare center within the next 6 months. Currently I am working on paying down 2 credit cards to get my score to at least the 750 number but would love some face to face info for a change(:  although I love the info I have been getting from the computer( Please if someone can point me in the correct direction) I am in IL..

[TimeToRecover]

Most definitely they will.  I actaully found my mortgage banker via my realtor.    I had no intentions of actually buying till late summer as taht is when my CD matures I would have my down payment funds.  So I started talking with a realtor and explained this to them.  well I wanted to get started early on the process and see if I would ahve any issues with the Foreclosure in my past.  The first time we went out to look I ahd only met with the LO 2 days before had nothing concerning loan info at all yet.  we actaully were out about 4 hours.  I also went to look at some new builds on my own.  by the time we went out again 3 weeks later I did have my preapproval.  I actually ended up buying a new build that is currently being build (IE no issue with the downpaymet not being avaialbe till august).

but sorry i didn't mean to make a short story long.  He had no problem taking me out and showing me home, answering my questions, meeting me at the builders on sunday to ultimately do the contracts etc...

Call around find a realtor you like, search on line try emailing or calling someone initially listing a property you like online.  Tell then your timeline and then it is up to them if they want to work with you or up to you if you want to work with them.  Finding a realator you like is a 2 way street kinda like a dr.  you need to find one you trust.

[pm11222]

My realtor didn't ask for my preapproval letter until we needed it to submit an offer

[topa]

---

@TimeToRecover wrote:

Most definitely they will.  I actaully found my mortgage banker via my realtor.    I had no intentions of actually buying till late summer as taht is when my CD matures I would have my down payment funds.  So I started talking with a realtor and explained this to them.  well I wanted to get started early on the process and see if I would ahve any issues with the Foreclosure in my past.  The first time we went out to look I ahd only met with the LO 2 days before had nothing concerning loan info at all yet.  we actaully were out about 4 hours.  I also went to look at some new builds on my own.  by the time we went out again 3 weeks later I did have my preapproval.  I actually ended up buying a new build that is currently being build (IE no issue with the downpaymet not being avaialbe till august).

but sorry i didn't mean to make a short story long.  He had no problem taking me out and showing me home, answering my questions, meeting me at the builders on sunday to ultimately do the contracts etc...

Call around find a realtor you like, search on line try emailing or calling someone initially listing a property you like online.  Tell then your timeline and then it is up to them if they want to work with you or up to you if you want to work with them.  Finding a realator you like is a 2 way street kinda like a dr.  you need to find one you trust.

---

TimeToRecover,

I've had the same kind of feeling about new versus resale. I just think you get better value by going new. The only issue I have is that I don't want an HOA/deed restricted property - it's almost impossible to find one - since builders normally put an HOA in place anywhere they build. Congrats on your new home!!!!

Lisa,

I believe you will need a 20%-35% down payment for commercial properties. An excellent opportunity came up for me about 2 years ago, the house I used to live in went up for sale. The property had 2 homes and 7 apartments, rental income is currently running at about $9k a month. The owner started selling in the mid $600s and after waiting a while - dropped the price to slightly over $400k. He just wanted to cash out as he had moved to Florida  and because we had a relationship (he used to be my landlord) he offered it to me for $350k at that point.

I didn't know have a clue about the differences, but when I investigated a loan for it - I was required to put down a 20% down payment - which I could not afford. 

[TimeToRecover]

I poped back in this evening and I think I posted that response on the wrong thread.  Sorry about that.

[pm11222]

I think 2 threads are mixed together

[ShanetheMortgageMan]

Getting a commercial mortgage depends much more on the business/property being purchased rather than the individual purchasing it.  The individual's personal finances & credit are important, but if the commercial property doesn't cashflow then very few lenders will want anything to do with it.  topa is correct about the down payment amount, 25% is pretty standard although more or less is acceptable depending on the strength of the business/property.  If you will be the owner-operator of the daycare then SBA financing would also be an option.  The key for any lender to evaluate a commercial transaction is getting a personal financial statement from the applicant and 2 years of tax returns from the business (or if it's a rental property, then 2 years of schedule E from the seller's tax returns).  After the lender evaluates you personally, then you go out and find a business or property, make an offer, it gets accepted and then the review of the business financials occur.

[Idaho_Mechanic1984]

Thanks Shane for your input. reading through this as I am in the process of trying to buy a small shop in town for auto repair listed for 50k in idaho. banker so far has mentioned possibility of SBA help which would allow 10% down or without they would need 20% down. Had to submit profit and loss for 2014 so far and last 3 years tax returns, now awaiting next level of insight.