Seeking advise for buying property

[stheis004]

I'm starting to look for property to move the business to instead of renting shop space. A place where I can live and work out of would be ideal. We've been in business since 2015 and have kept good records and what not but are starting to hit some road bumps on the traditional mortgage route as among other things, taxes show significat amounts of depreciation which underwriting doesn't like.

Seeking any advise or experience any of you have had with this. Have plenty of cash for downpayment & near perfect credit. Thanks in advance!

 

[Able Feller]

Man I hope you get this sorted out.
I just went through a headache on my refinance!
The government has their hand in all of these mortgages now and the banks have their hands tied. They give away everything and we who do right and try to better ourselves and situations have a hundred miles of red tape. Every week was “provide more documents” right up until the day before the closing.


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[Reach]

Start talking to credit unions and private lenders, sometimes those can be more lenient on their requirements to give you a loan. Also, look for a privately funded bank, as they do not have to follow government rules - when I bought my house and I was having trouble getting a loan due to some oddities on the house I was buying, my realtor (an old friend of the family) called the bank where he was on the board and just told them to give me a loan. No credit checks, no questions, I had my loan in 20 minutes.

Also, some banks are more friendly to small businesses in general, that may help you. Look into options besides the traditional mortgage too. I had a 5/20 loan when I bought my house. It was a five year loan, amortized over 20, so I had to refinance or pay off the balance at the end of 5 years. I rolled the balance into a 10 year loan, with 5 years fixed rate and 5 years variable. It was a little odd, but it has worked well for me and I’ll have it all paid off in a few more years. Sure beats a traditional 30 year mortgage, even if it was a bit more complicated.

 

[ATH]

Who will own the property?

You - as your house...that also happens to have a shop?

Business - which will rent space to you?

Both?

I'd think the "easiest" path (to get a mortgage) would be for you to buy it as an individual then rent space to the business. That makes it a straight up mortgage.

Or pay cash... I bought a property 5 miles fromy house. Then had a pole barn built. Worked with the builder to get a "shell" as low cost as possible. I'll put concrete in the floor later and insulate later, etc... I did buy in an unzoned township and built an agricultural building so save a lot on permit (none) stuff as well.