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10 Replies Last post: Mar 30, 2008 12:03 PM by M1S96F1

any suggestions on securing long-term real estate loans?

Jan 12, 2008 9:44 AM

garygm 4 posts since
Jan 12, 2008

about 3 years ago, I purchased property and constructed a building for my business. Signed a conventional loan with my bank with a 15 year amortization but a 5 year renewal. Since then, I also purchased the adjacent property and would like to group the properties and finance for 15 years, no renewal. Any suggestions?? BTW, the property/building value is already equitable because I did the construction myself at cost (i'm in the construction business).

Thanks,

Gary

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LUCKIEST 7,926 posts since
Aug 6, 2007

1. Re: any suggestions on securing long-term real estate loans? Jan 12, 2008 11:18 AM

gary, Yes you will get many suggestions on securing long-term real estate loans.
It is good to know that you are in the construction business.
Any lender will want to see a Business and Marketing Plan.
Good luck, LUCKIEST

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fmartin09 10 posts since
Jan 12, 2008

2. Re: any suggestions on securing long-term real estate loans? Jan 12, 2008 2:38 PM

Gary,

I've been a commercial banker for over 11 years and I could help you with that... Depending in what the amount to finance is and the payments that your business's cash flow can support there are many options for you. Without looking at your financial statements I could venture to say that you'd be a good candidate for an SBA or a conventional commercial real estate loan. Send me an email and I'd be happy to point you in the right direction.

fmartin@prudential-capital.com

www.prudential-capital.com

Best regards,

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garygm 4 posts since
Jan 12, 2008

3. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 6:45 PM

any other suggestions??

Thanks,

Gary

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CEO Space 271 posts since
Jan 13, 2008

4. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 7:18 PM

I would first talk to the people who are holding the 15 year note and then your own banker (if he is someone else). They approved you once, knowing they may lose your business, they may be willing to renegotiate it, if you've been a good client and paid all payments on time.

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fmartin09 10 posts since
Jan 12, 2008

5. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 7:57 PM

Gary,

You could probably refinance everything under one note (including the new building) and this will save you money in closing costs. Furthermore, since you already have a good amount of equity I don't see why you couldn't refinance. The magic number for most banks is 75% or 80% LTV (loan to value). This threshold will insure that you'd get the best rates/terms as this is considered acceptable exposure. You could go up to 90% if you qualify for a 504 SBA loan, which will have a pretty competitive rate. However, SBA notes carry a lot of paperwork and they take a lot longer to execute (not to mention a declining 10% to 1% declining prepayment penalty for 10 yrs). Let me know what kind of terms you have from your bank as I should be able to beat them (I work directly with capital markets so I could bring you wholesale pricing). We usually don't deal with transactions smaller than $500k, but I'm willing to make an exception. Let me know if I can assist you any further.

Best regards,
fmartin@prudential-capital.com
www.prudential-capital.com

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garygm 4 posts since
Jan 12, 2008

6. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 10:13 PM

in response to: fmartin09

Thanks fmartin! I will contact you tomorrow to discuss this further.

Take care,

Gary

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garygm 4 posts since
Jan 12, 2008

7. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 10:17 PM

in response to: CEO Space

thanks CEO Space....I will talk with my banker. I have never had a late payment and have a considerable amount of money in his bank. It was actually quite easy to get the loans from him, but he will only do a five year renewable loan with a 15 year amortization (I just want a straight 15 year loan) .

Take care,

Gary

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CEO Space 271 posts since
Jan 13, 2008

8. Re: any suggestions on securing long-term real estate loans? Jan 14, 2008 10:21 PM

in response to: garygm

Gary,

Make sure he knows what you want and that you are willing to go somewhere else to get it. Not in a threatening tone or anything like that but just in a matter of fact, this is what I really want and I'd like to keep my business with you but this is what I want.

And be willing to do that. There are a lot of lenders out there who would love your business
on your terms.

Some in this very forum.

Good luck

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KevinBull 2 posts since
Jan 23, 2008

9. Re: any suggestions on securing long-term real estate loans? Jan 23, 2008 2:16 PM

GaryM,

My company provides real estate loans to businesses. We could indeed get you funded at a very compertitive rate, wrap both properties up and maybe even get you some money back depending on your equity position and the business cash flow.

Drop me a line and we will discuss further, Kevin.Bull@hotmail.com

Have a great day!

Kevin

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M1S96F1 10 posts since
Mar 25, 2008

10. Re: any suggestions on securing long-term real estate loans? Mar 30, 2008 12:03 PM

I am a little confused by your post. Are you having problems with your present lender. In your post, you indicate that you have a conventional loan now. You may not be happy with the LTV and are looking to perhaps cash out some money. I would love to talk more about with you. Please contact me at michael@msfcapitaladvisors.com.

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any suggestions on securing long-term real estate loans?

Jan 12, 2008 9:44 AM

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