Board Topic: 90% Stated Commercial Land Loan
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90% Stated Commercial Land Loan

Posted by: Frank Dec 15 2004, 03:13 PM
Does anyone know of a lender that will finance anywhere from 85-100 LTV of the purchase price of the land. My brother is looking to buy the furniture store he is in and thier is an automotive shop in the back. would this affect the loan. please advise. I need to find the lender that can do this in California . It is a golden oppourtunity.

Posted by: Commercial Lender Dec 15 2004, 09:46 PM
Land loan? "buying the furniture store"?

Is its a land loan or a retail store loan. If land, unless its a develpment project you will not get more than ~70% financing (Hard money lenders who will put a lien on other assets including the family dog excluded).

Posted by: loanuniverse Dec 15 2004, 10:02 PM
The way we would probably underwrite this would be as an owner occupied commercial loan, which would be repaid with the cash flow from operations of the furniture store supplemented with the rental income of the automotive shop. Loans to businesses that buy property that is partially rented to tenants happens all the time. It should not affect your loan request.

Other than additional environmental risk associated with the business conducted by an automotive repair shop, having an additional tenant should be a plus for the loan specially if the tenant has been there a long time.

Good luck
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