Hi -
I am new to commercial loans.
I currently live in New Orleans. My husband wants shop space to work on his motorcycles, with other friends that do the same thing. They currently rent shop space, but the landlord has recently not renewed the lease, and is asking for month to month and they are afraid they are about to lose their shop space.
So I started looking at properties for sale. I found a possible place, commercially zoned that is listed at a rock bottom price of $30k. I have not been inside the property yet, but it is in a flooded area and will probably need some gutting, and the electrical redone. It doesn't have to be pretty, because it's just going to be a motorcycle shop that stores tools and bikes and we could get the basics done pretty easily.
We currently have a mortgage payment, and one auto payment and a very small amount of credit card debt (it vareis between zero and a little bit carried over). Our FICO scores are very high, mine is in the 800s, so generally I can qualify for whatever I need.
What is the best way to go about finding a commercial loan lender? How much cash down do you need for such a loan?
We don't plan on using this property as a business at this time. They are currently hobbyists and not selling anything, but in the future, that may change. Will that affect our ability to get the loan?
Our intent with the payment is to make up the money collecting rent from the guys who share the current shop, which should completely cover our payment.
The thing about this property is that the land alone is worth that price, and as the city rebuilds, the land will be more valuable than the building. It's very close to areas that didn't flood, and an area that is currently going through gentrification.
Will the condition of the property make it harder to find a loan?