FAQs about Financing Distressed Commercial Real Estate

FAQ about Financing Distressed Commercial Real EstateObtaining financing for distressed commercial real estate can be challenging. Even if the commercial property is a good bargain, financing your distressed commercial real estate maybe limited.

Purchasing Distressed Commercial Real Estate

A distressed asset has a negative or poor cash flow; otherwise, it wouldn’t be classified as “distressed”.

Q.) How will lenders be able to lend if a commercial real estate property isn’t cash flowing?

A.) A private money or hard money lender will lend on distressed commercial real estate with a lower loan to value or also include cross-collateralizating upon your other real estate investments or have two other guarantors qualify for the loan.  

Q.) Do I need good credit and cash reserves to be qualified for purchasing distressed commercial real estate?

A.)  It depends on the property type you are purchasing, for example, a distressed marina will require good credit, cross-collateralization and cash reserves. Example 2) A distressed medical building will not require cross-collateralization.

Q.) What property types does your company finance?

A.) First of all, we are not a direct hard money or private money lender. We do not charge upfront broker fees for our alternative lending programs.  The property types we typically finance are:

Apartment Buildings

Bowling Alleys

Fractured Condos

Golf Course (case by case)

Hotels

Land (case by case)

Multi-Family (5 units and Up)

Medical Buildings

Marinas

Motels

Mixed Use

Office Condo (case by case)

Retail

Strip Mall (case by case)

Refinancing Distressed Commercial Real Estate

If you’re in pre-foreclosure or foreclosure status on your commercial real estate loan, we may be able to help you.

Q.) How can you help me if I am in foreclosure or pre-foreclosure status with my current commercial real estate loan?

A.) We would first provide you with a free consultation to discuss whether or not we may be able to help you exit out of your current pre-foreclosure or foreclosure situation.  This all depends if your current lender will accept a short pay off, in most cases, the lender will take a short pay off only if you have negative equity.

Q.) I have bad credit, can you still help me get financed for a commercial real estate loan?

A.) If you are currently late on your home loan and late on your commercial real estate loan, your chances of obtaining a new commercial real estate loan are restricted.

Q.) Do you finance commercial properties only in Florida and Illinois?

A.) No, we able to finance commercial real estate around the country, though, we prefer to meet of our clients in person who live in Florida and Illinois.

More questions? Your alternative lending source for commercial hard money and private money is just a phone call away.

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For more information on how we can help you finance your distressed commercial real estate with Private Money and Commercial Hard Money in Chicago IL, Naples FL and Palm Beach FL, please fill out the online contact form about your concerns or give us a call at 866.885.5131. Read what our valued clients have to say about First Pro Capital on our Testimonials page.

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