Me and a group of investors (three friends) have identified a property we will like to invest in. The property as three apartments which are already rented out and there is also a store front (which is currently closed). The business used to be a bbq/chicken place and it has all the equipment and licenses to start operating fairly quickly. Now, in this sitution, what are our loan options? Are we forced to get a commercial loan? If so, what are the typical loan terms and rates? We haven’t formed an LLC yet and we trying to figure out how to proceed. Should we apply under the LLC and have all members do a PG? or can we do a residential non-owner occupied loan? thanks in advance.
If the property is classified as mixed use you will definetly need a commercial loan.
As Chris noted, you will need to seek a commercial loan outlet—mixed used properties can be financed up to 90 LTV/95 CLTV depending on cash flow, debt service and borrower financials.