Commercial Loan on Real Estate?
I need a loan for a commercial property, valued at $5 million, but with specific concerns.. The property already has a 70% loan on it which does not allow junior liens. It is held in an LLC and generates plenty of cash flow to support another 10% debt. I would like to borrow money in the LLC. The loan can be secured by the LLC, but not an actual lien on the title of the property. I also do not want to personally gurantee the loan. Any thoughts about what I might be able to get?
Update:To clarify. I cannot refinance. That is not an option.
Answers & Comments
Verified answer
I agree; your only option would be to refi it and it cannot be done. I would check the loan terms and see if a payoff could be done involving another piece of property. You shouldn't have a problem since it looks like it's not upside down and you're doing well.
And it's against the law since if you do something and not of record, that will come up later as a cloud on the title, which could easily make it a concern in resale. That's too big of a risk I would want to take. I've seen it all with +25 yrs Title Officer\Real Estate.
The last thing you want to do is anything questionable where a lender can find out through the title search.
i think your best bet may be to refinance the original loan. there is a possiblity you may be able to get 80% ltv.
I know of one company that would look at the senerio
NO promises but if it can be done they would be the ones i call