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Commercial property loans?

1,689 Views | 11 Replies | Last: 7 yr ago by mncag
Premium
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AG
Can someone tell me the ins and outs on loans for a commercial office building (maybe partial warehouse).

In the $1-1.5 million range. Houston, TX

Can swing a wide range of down payments required.

Prefer to do a long-term 20yr+ loan with no variable rates or balloons.
cgh1999
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AG
Typical commercial loans are 5-7 years with amortization of 20-25 years. 75%-85% loan to value.
Copp
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You can get fully amortized commercial loans but most are ARMs. I have seen some fixed but the terms are 15 years or less.
jja79
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AG
quote:
Typical commercial loans are 5-7 years with amortization of 20-25 years. 75%-85% loan to value.

He knows.
LihaiAg06
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AG
We would do a longer term loan of 15-20 years amortized anywhere from 15-25 years if this deal was in our market. We're in SA and Austin. You have any property in those markets? If so, we might be able to look at your Houston property.
flyingaggie12
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AG
Premium I have a friend that works in Debt & Equity sourcing for CRE and I'm sure he can answer all your questions. Let me know if you want to get in contact with him. He's an Ag and from Houston.
Bitter Old Man
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AG
quote:
Can someone tell me the ins and outs on loans for a commercial office building (maybe partial warehouse).

In the $1-1.5 million range. Houston, TX

Can swing a wide range of down payments required.

Prefer to do a long-term 20yr+ loan with no variable rates or balloons.
If you are buying it to occupy at least 50% of it, then you can get terms like that through the SBA 504 program, and up to 90% financing.

Otherwise, full term CRE loans are hard to find, but they are out there. Several years ago I bought some loans from a company that originated 30-year CRE loans. I'll reach out to my old contact and see if he is still there.
Premium
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AG
quote:
quote:
Can someone tell me the ins and outs on loans for a commercial office building (maybe partial warehouse).

In the $1-1.5 million range. Houston, TX

Can swing a wide range of down payments required.

Prefer to do a long-term 20yr+ loan with no variable rates or balloons.
If you are buying it to occupy at least 50% of it, then you can get terms like that through the SBA 504 program, and up to 90% financing.

Otherwise, full term CRE loans are hard to find, but they are out there. Several years ago I bought some loans from a company that originated 30-year CRE loans. I'll reach out to my old contact and see if he is still there.


Yeah, SBA. We'll be in at least 50%.
Bitter Old Man
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AG
Ask your banker who their SBA guy is and ask to talk to them and they can tell you about it. If they aren't an SBA Preferred Lender, find a bank that is. There are a few commercial bankers from Houston on here that post from time to time, but I cant remember their handles.
cgh1999
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AG
#raiseshand

My bank is a preferred lender. I don't do the SBA myself, but work directly with our SBA group on this type of transaction.
jja79
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AG
^
^
^
^
He knows.
WoMD
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I did the sba approach 5 years ago at 6.8% for 25 years. A few months back it was restructured to 4% for 15 years. All it took was one phone call and a signature. A standard refinance is a convoluted time intensive mess by comparison. This advantage over a regular loan is another selling point.
mncag
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I work on non bank loans ("almost bankable) , usually max loan 70 75%
rates in 6s - 8s for 20 to 30 years.

short terms loans (6 - 36 months) bridge- rehab and such.
if local banks will not fund we do those - 7's - 13% pending borrower and property.

For commercial loans under 5 milllion (this is my suggestion)

prepare:

"story" - loan summary
PFS
2 years tax returns
couple of bank statements showing liquidity and down payment
property contract (if purchase)
photos
list any repairs needed.
exit strategy if short term or construction

take a well organized package to some local banks.

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