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Give me a call to discuss your business funding needs further.
I own commercial property, Welcome
Where are you?? What do you have in mind??
Who can help me get it done ?? I can. Share more info besides Restaurant and Food Services
I am from Georgia. I am wanting money to pay off some personal bills and make some improvements to the business.The building (6000 sq. ft) and land(1.44 acres) was appraised at $325,000. The contents is probably worth $75,000 and te yearly cashflow is probably $150,000 so the business , land and building is worth about $550,000. I owe the bank about $220,000. My credit score is BAD .What can I do ? Who can help me ?
Your cash flow appears to be healthy. Why not just pay down your personal debt out of that? How much are you looking to borrow?1 of 1 people found this helpful
If your personal credit is weak, the best you'd be looking at is a hard money lender, but the LTV on those deals tends to be 50% or less Based on your appriasal, your current LTV is already 67%. Even if you did find a hard money lender, it will be expensive.
As I often tell my clients, sometimes staying the course is the best option. It seems that you've pulled as much cash out of your property that you can (for the time being) Use your fanastic cash flow to finance your business for the next 6 - 12 months, then revevaluate.
The key will be the credit worthiness of the business and its ability to pay rent. If those two are good, then you might consider a sale-leaseback as an option. Essentially, you sell the property and building and enter into a lease for the space you occupy. It's not a personal issue, its a business issue, so your personal credit shouldn't be an issue unless the business and your personal life are so intertwined that debt and cash flow are comingled.
Anyway, here's how the calculation would work:
Take the income from rent for the year, and divide that by 0.10. That would assume a buy at a modest 10% capitalization rate, which given what seems to be some risk, would be prudent. (ie: if you can pay $10 per square foot for your 6,000 square foot building, that would be a yearly income of $60,000 which at a 10% cap rate would make the value of the property $600,000. The bank gets their $220,000 at closing, so in the end, you would net around $380,000 and be renting space on someone else's property.
From that, you would interpolate how your "bad credit" would play into the transaction. The higher the risk to the buyer, the greater the cap rate he would need in order to make the deal palatable.
We can help you. I need to discuss this with you by telephone. Please contact us at your convenience.
I work with a group that does credit restoration. We could help you to improve your credit score. On average we help a client increase their FICO +127 pts in 6 mos. Let me know if you would be interested in more info.
What type of business are you in? Do you do cash business mainly or do you have a merchant account?
There are options out there to get you financed based on your expected future revenues. I would look at one of those products because they are not FICO score driven. Feel free to give me a call and I can go over a few scenarios with you.
401-942-3607 ext.13 Jason Cole
Depending on the type of commercial property and how much equity you are trying to pull out (if its less then 60% of the value or lower) then I may have an option that would work for you regardless of your credit. email firstname.lastname@example.org with your details (amount needed, property type and worth,purpose, current credit,etc..)