CELOC (Commercial Equity Line of Credit)
Need a Funder or Vendor? START HERE

Results 1 to 4 of 4
  1. #1

    CELOC (Commercial Equity Line of Credit)

    I have a client who has close to 2MM-3MM of Real Estate that he owns outright and is Mixed-use. He wants to obtain capital for more property acquisitions. I explained that a Cash-out refi may be a better option but he is stuck on the LOC. The two properties are 100% occupied. Has anyone done a CELOC before? If so what lender would you recommend?

  2. #2
    Senior Member Reputation points: 1755
    Join Date
    Oct 2022
    Posts
    280

    I would recommend the potential for an Asset Based Lending (ABL) which would be a synthetic version of a revolver with a lien against your real estate.
    Elon Henek
    HCI - Glen Cove, NY
    Main: 1-516-676-1854
    Cell: 1-516-236-4086

  3. #3
    Do you have any recommendations beyond WBL?

  4. #4
    Senior Member Reputation points: 72398 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    2,244

    Cash out refi runs a bit less than 1% a month interest only fixed for 10 years.
    WBL and Ironwood can't compare with their costs. And they max at 65% LTV I believe.
    Your client needs to face realty.
    Take the max cash out which is running 75% LTV and use what they needs and bank what they don't use.

    BTW - mixed use isn't commercial...it's a type of dwelling that is unique in of itself. Biggest issue in financing mixed use is finding comparable sales in the area....it's a difficult scenario to fund because of that. Still fundable though. I did one in Hawaii...had one lender do it as all other passed. Paid off 5 MCA's. $1.1M
    Last edited by Olderguy; 09-27-2023 at 12:19 PM.
    Steve Benjamin
    Professional Business Loans

    522 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

Similar Threads

  1. Replies: 8
    Last Post: 03-22-2022, 03:33 PM
  2. Doctor with Collateral seeking equity line of credit.
    By CashAdvanceKing in forum All Other Lending
    Replies: 4
    Last Post: 05-21-2019, 02:03 PM
  3. Replies: 6
    Last Post: 05-23-2017, 08:51 PM
  4. Home Equity Line of Credit (Bridge to a Business)
    By Love kaisei in forum Deal Bin
    Replies: 7
    Last Post: 02-28-2015, 08:05 AM
  5. Home Equity Line of Credit (Bridge to a Business)
    By Love kaisei in forum Merchant Cash Advance
    Replies: 2
    Last Post: 02-23-2015, 06:24 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

Pipe secures $100M credit facility
Cloudsquare: 14 new lender APIs
FundKite survey finds 77%


DIRECTORY