Multi-family Apartments and Mixed Use Properties
There must be at least five (5) apartment units to qualify for a commercial real estate loan unless there is a mixed use property which combines apartments and retail or office space. In that situation, one (1) or more apartments combined with retail or office units will qualify for a commercial mortgage.
Loan Terms for Qualifying Properties
- Minimum loan = $100,000
- Maximum LTV with secondary financing = 90%
- Long-term fully-amortized loans without recall or balloon terms
Can Parcels be Combined in order to Qualify for a Commercial Real Estate Loan?
A common occurrence is illustrated by the following example: one parcel has two apartment units, another has two more apartment units and a third parcel has a single-family residence that is a rental property. All three parcels are adjoining. Can these properties be combined in order to qualify for a commercial mortgage?
Yes — but only if the following scenario can occur: if the parcels can be resurveyed into one parcel with one property tax identification number.
Recommended Financing Strategies for Multi-family Apartments and Mixed Use Properties
For commercial mortgages under $1 million, a Stated Income Commercial Mortgage should be actively considered. This form of commercial financing will not require income tax returns or other income verification. Stated Income commercial real estate loans are not provided by many/most traditional banks.
Seller seconds and other variations of subordinate financing should be considered. This will permit the most aggressive Combined-Loan-to-Value (CLTV) for a commercial mortgage, up to 90% of the property value. This is important if you are the buyer because it will provide another financial tool to help with financing. It is important to the seller because it might enable someone to buy the property who could not otherwise do so. Subordinate financing (including seller seconds) is not permitted by many/most traditional banks.
AEX Commercial Financing Group believes that commercial property investments should not be financed with short-term funds. It is essential to obtain long-term financing of at least 15-20 years (and longer is even better).
Suggested Websites for More Information
Avoiding Commercial Real Estate Loan Problems
Smart Money Business Loans
Contact Information
AEX Commercial Financing Group
Stephen Bush
Chief Executive Officer
Phone: (937) 780-4030
bush@aexllc.com
PO Box 353, Leesburg OH 45135-0353 USA
Chief Executive Officer
Phone: (937) 780-4030
bush@aexllc.com
PO Box 353, Leesburg OH 45135-0353 USA
AEX Commercial Financing Group specializes in quick closings for difficult commercial real estate loans from $100,000 to $25 million and business cash advances up to $300,000 throughout the United States.
About AEX Commercial Financing Group
