hello, is anyone familiar with commercial loans? I am thinking of buying a campground priced around $500k or more. I assume I`ll need to find a commercial lender to do this. Does anyone know how to search for them, what the typical rates are, and what their typical requirements are to approve a loan? I am in Ontario. Thanks everyone!
Commercial Lending Question
- Thread starter gentilr
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There are lots of commercial mortgage brokers out there. Every mortgage broker can do commercial mortgages but very few can do them well. If you want to email me I will hook you up with some commercial people that could help you.
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QUOTE (gentilr @ Apr 13 2009, 06:12 PM) hello, is anyone familiar with commercial loans? I am thinking of buying a campground priced around $500k or more. I assume I`ll need to find a commercial lender to do this. Does anyone know how to search for them, what the typical rates are, and what their typical requirements are to approve a loan? I am in Ontario. Thanks everyone!
try montrose mortgage .. they do all sorts of commercial loans.
Assume a campground gets 30% to 35% loan-to-value .. MAX. Less if you know little about it. Is there other collateral, like your own home or a 2nd revenue property ?
What province is the campground ? [You are in ON .. that doesn`t mean the campground is there, btw]
What is the campground`s NOI ? Is there room for upside ? Do you run it or a 3rd party ? Why is he selling ? What is the CAP rate (better be 25% or better !!) ? Is the land worth more for another use, say a trailer park or a resort development ?
What is the motivation to buy a campground ?
Do you have 300,000 cash ?
The seller might be a source of money that should be explored (VTB !!).
try montrose mortgage .. they do all sorts of commercial loans.
Assume a campground gets 30% to 35% loan-to-value .. MAX. Less if you know little about it. Is there other collateral, like your own home or a 2nd revenue property ?
What province is the campground ? [You are in ON .. that doesn`t mean the campground is there, btw]
What is the campground`s NOI ? Is there room for upside ? Do you run it or a 3rd party ? Why is he selling ? What is the CAP rate (better be 25% or better !!) ? Is the land worth more for another use, say a trailer park or a resort development ?
What is the motivation to buy a campground ?
Do you have 300,000 cash ?
The seller might be a source of money that should be explored (VTB !!).