What are your top resources to find funding for commercial property if you’re a woman or minority ?
Jun 29, 2009
in
Commercial Property Loans
Looking in the neighborhood of 750k – 1.5 million dollars… Assuming the only thing you have to liquidate any assets from would be the home and 401k what are other options where this level of funding could be acquired (DO NOT INCLUDE credit cards or venture capitalists in your responses) ?
I need answers that speak towards women and minorities seeking loans to acquire commercial property.
Thanks!
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One comment
Philip R on June 29, 2009 at 9:32 am
commercial lending is not easy. You can check out http://www.hud.gov to start because they do have programs geared toward minorities. I do a lot in commercial real estate, and have not heard of any programs out there that will help you. The buyers I deal with usually find a pool of investors on their own, and offer them equity positions, or a rate in the range of 10%. You can also go to a Hard Equity lender. They will charge in the range of 8% to 18%, depending on the price of the property and if you are getting a good deal. They usually only lend up to 65% of the value of the property and will require you to put your house, or 401 K up against the loan. Write up a good business plan and try the bank. Just because I haven't heard of a program doesn't mean there isn't one out there, so it is worth doing the homework. If the commercial property has a positive cash flow from day 1 that will be much easy to finance, but again you will need to find the investors to help you. 35% from investors, and 65% from Hard equity. It is not impossible, just make sure to work the numbers to make sure you can still have a positive cash flow after all those finance charges. GOOD Luck.