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Are you a real estate investor trying to acquire a light industrial property but struggling to find a bank to fund the purchase? Look no further, as commercial mortgage advisors like Beau Eckstein can help expedite the process for you and find you the best terms.
Finding Funding for Light Industrial Properties
In a video posted on YouTube, Beau Eckstein, host of the Investor Financing Podcast, offers advice to a real estate investor struggling to find funding for a flex light industrial property under contract in Florida. The property has 16 units, with 12 already leased, and the purchase price is $1.975 million, with the investor looking for 75% financing.
Eckstein notes that it is a common occurrence to have trouble finding a bank to fund a loan of this size. However, he advises that anything under $2 million is likely to be funded by a community bank or a Federal Credit Union that specializes in lending to commercial properties. These types of lenders often provide better terms, and the interest rates on projects like these can range from the low sixes to about seven percent.
Working with a Commercial Mortgage Advisor
Eckstein suggests finding a commercial mortgage advisor, like himself, to help find the right lender for your specific situation. He notes that advisors have a system to input all the necessary data, such as rent rolls and other information, and can quickly get it in front of a handful of credit union and bank partners to expedite the process.
Additionally, Eckstein recommends finding a credit union to fund the loan, as they often provide better terms and do not have prepayment penalties. He notes that, despite being based in California, he recently had a similar scenario and put it through his system, resulting in five offers in the first three days, all of which had good loan-to-value ratios and competitive terms.
Book a Call and Get Term Sheets
If you are struggling to find funding for your light industrial property acquisition, Eckstein encourages you to book a call with him or another commercial mortgage advisor. Advisors can provide term sheets quickly and get you quotes, which is essential when you have a property under contract.
In conclusion, finding a bank or credit union to fund your light industrial commercial property acquisition can be challenging, but working with a commercial mortgage advisor like Beau Eckstein can expedite the process and provide you with the best terms. Don't hesitate to book a call and get term sheets today.