Discovering the Ideal Bank or Credit Union for Financing Your Commercial Building

Discovering the Ideal Bank or Credit Union for Financing Your Commercial Building

Question: Hello Beau, I made the purchase of an office condominium in November 2022. I paid all cash, totaling around $791,000, and I invested approximately $130,000 in various improvements.

Subsequently, I approached a local bank for financing, but it has been several months with no progress. I've had dealings with two banks so far, both of which eventually abandoned the process.

This situation has left me immensely frustrated.

Could you provide assistance and guidance in this matter? I'm seeking direction on how to proceed. Thank you. Jasper

- Beau discusses difficulties faced by Jasper in obtaining financing for his recently purchased office condominium.
- Jasper seeks guidance on how to proceed after facing delays and frustration with two local banks for financing his property.
- Beau suggested that for small commercial loans under a million dollars, credit unions, community banks, or regional banks are the usual options.
- The speaker outlines potential financing scenarios: either using loan-to-cost or new appraised value, usually around 70-75% of the property's value.
- Finally, Beau offers assistance through his expertise, a matching program, and a personal database of bank contacts to navigate the challenging process of obtaining commercial loans.

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Timestamps:
(00:48) - Process of obtaining a small commercial loan
(01:04) - Exploring options for loan-to-value ratio based on ownership duration and appraised value
(01:35) - The importance of good global cash flow and documented income for a bank deal
(01:46) - Overview of the three platforms used for placing deals and personal database contacts
(02:08) - Challenges with lending in smaller cities and understanding lending footprints
(02:42) - Assurances of being able to navigate the lending process and the frustrations involved
(03:40) - Realistic expectations for loan-to-value ratios and finding credit unions for placement
(04:13) - Alternative funding sources for those with reported losses or unique situations
(04:30) - Frustrations of the lending business and hope for future improvements

💥 Thanks for watching 💥
#FinancingCommercialRealEstate #financingoptions

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance your all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.