Residential To Commercial Guidance Please
I have under contract a 3701SF 14 room home on Main St in Groton MA. It is perfect for a group of offices (after remodelling).
It is currently zoned for mixed use with an in home business allowed however it was originally zoned as commercial until 1960. Several homes have been converted this way (into banks dentists etc) although I dont know if they needed rezoning.
So some questions:
Is the re-zoning a big issue?
Where is the best place to showcase such a property? besides TCI of course 
Are there key brokers? What do brokers want typically? 3%?
Please excuse any naivete...
JK
Seems unlikely that you would get a 2nd lender @ 9% unless it is somebody you know-- relative college buddy, that sort of thing.
Commercialking,
Thanks. I guess I was just making up the 9%, but whatever it is would ANYONE even lend at this LTV? Hard Money Lender? Private Investor? , etc...
thanks!
No. You can find 80% if the debt service is at break even. You could try to arrange a second lien off the books
If you own other property it is probably easier to just give a lender a mortgage on something else that you own and apply the proceeds to this property.
I hope you have been able to move on this project. However, I the CAP rate is good, the LTV is reasonable, but the DCR should be atleast 1.2, if you can get private investors to put up the 25% at whatever terms they agree and that would allow you not to be in negative cashflow would be great. Also, You will need about 2% for closing cost.
Best of Luck
How did you get debt service to be $431,676
??? Are you using a loan amount other than $6,750,000.?