Hello All,

I recently joined your forum and I find it very helpful. I am currently working on a commercial construction loan and have had the toughest time finding a lender. If you can provide any suggestions, I would greatly appreciate it. Please feel free to contact me at <see signature>. Thank you


John

You will need to provide a great deal more detail. Type of project, location, loan amount, "as is" & "as completed" estimated values, capitalization, stage of planning, credit, status of leasing or pre-sales, borrowers experience etc.

I appreciate your prompt response with regards to the the commerical construction loan my clients are looking for. The project is considered an add on to their present commercial building, client wants to add a laundromate and gift shop. Completed estimate is at $800,000, that's including the laundromate equipments. Property is located in Northern California, Loan amount is $720,000 with client's 10% down payment, property is valued at $1.3M as is and $2.5 as completed estimated value. Stage of planning, we have blue print, estimate and down payment if necessary. Credit is very good, added properties will not be leased as the client will be running the business. Borrower has 7 years experience in the business.

Looking for a lender to review this project and many more to come. Thank you

Will the borrowers be occupying greater than 51% of the building, once completed, with their own businesses? If so, a local preferred SBA lender or a national SBA lender such as Business Loan Express, CIT, Temecula Valley Bank, US Bank or Wachovia would be the way to go. If not SBA eligible then try a local bank. One thing to remember, the SBA does not recognize laundromats as businesses.

If the as is value is 1.3m and the loan amount is only 720k, the LTV is very good unless their is additional debt on the current property not included in the 720k loan amount. You say they have excellent credit and experience. The key will be cash flow as outlined and justified by their business plan. If they don't have a business plan then that is the first step to getting financing.

Commercial LO,


I appreciate your feedback, thanks a bunch. [








quote=Commercial LO,Jan 18 2006, 03:05 PM]
Will the borrowers be occupying greater than 51% of the building, once completed, with their own businesses? If so, a local preferred SBA lender or a national SBA lender such as Business Loan Express, CIT, Temecula Valley Bank, US Bank or Wachovia would be the way to go. If not SBA eligible then try a local bank. One thing to remember, the SBA does not recognize laundromats as businesses.

If the as is value is 1.3m and the loan amount is only 720k, the LTV is very good unless their is additional debt on the current property not included in the 720k loan amount. You say they have excellent credit and experience. The key will be cash flow as outlined and justified by their business plan. If they don't have a business plan then that is the first step to getting financing.

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I WOULD BE INTERESTED IN TAKING A LOOK AT THIS PROJECT. FEEL FREE TO FOWARD INFO ON IT TO ME.