Very first time professional bank loan without having a business enterprise history? – Score: 9

7 thoughts on “Very first time professional bank loan without having a business enterprise history? – Score: 9”

  1. For an investment loan on a commercial property it’s based on 2 main factors: personal cash flow and property cash flow.

    However you are proposing that you’ll operate a business out of this, making the property owner occupied. This is a start up business and you likely need private money to get a loan. Lenders typically require 3 years operating history +YTD although some SBA lenders will lend to you as long as you’ve filed 1 years tax returns for the business.

    You’ll probably need a business plan, projections, start up budget, bio detailing your background in event hosting, along with all the other typical loan requirements (taxes, bank statements, credit, etc) to get someone to consider it

  2. With that much down, it might be worthwhile to make an offer with financing through the seller. Do $125K down – 8% owner carry – with a balloon at 5-10 years. You’d be surprised how often these type of offers get accepted on commercial property.

  3. Echo what others have said, if you were buying an investment property with some solid tenants, and good outside income probably a deal here, but with start up nature, SBA or seller financing are your best options.

  4. Are you planning on keeping your existing positions? If so, that income will be taken into account. Your best chance is the SBA- but like others have said, a building for this purpose would be difficult to finance.

  5. Where are you at that is doing large indoor weddings and corporate events? This is about the worst year in a century to start that type of business, financing might be a little tougher than you think.

  6. Good thoughts here, I’d especially consider the suggestion made by u/LVfutures.

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    Another option, whether or not you intend to become more “institutional” down the line, is to co-sponsor the deal with an experienced investor who has a few years of qualifiable cash flow on the books and preexisting relationships with lenders. The downside of this is that it is potentially more complex and not as generous to you compared to obtaining owner financing. If you have a friend/relative/connection who has experience and is willing to invest, that might be your answer.

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