Commercial Real Estate Loans

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I am looking to start a bar in Chicago, IL and I know the building that I want to acquire. I have a partner who is able to put $350-400K into the project but the building itself will cost between $750K-$1M to acquire and will require anywhere from $100K-200K to restore and convert. I would like to know the best place to go for a commercial real estate loan keeping in mind the significant funding we already have. I would like to limit the down payment to about $100-150K to keep the rest available for the bar itself. As a side note my personal credit score isn't fantastic (about 630). Also, the building is not currently a bar but an old theater so it will require remodeling, however they do hold a liquor license so it is properly zoned. Thanks!

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A local "Chicago Bank" that does this type of financing is Park National Bank. The main Chicago Branch is at the intersection of Chicago and Clark.

I'm considering getting into commercial real estate loan brokering and I would like to find out how many point lenders usually pay on these types of loans. I know the amount can vary, but I'm looking fo a range so I can calculate my possible commission. For argument's sake let's say an average loan amount would be $2.5 million. But, any info on how the system works on loans larger or smaller than that would be helpful also. Thanks.

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2-5 points

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Its possible to find one, but you have to look at different lenders and see what their conditions are for a no-appraisal commrecial loan. Try different lenders like WaMu, World Savings, BofA, etc. Talk to one of their loan officers.

I need to know what should I do to establish referral relationship with banks and whom should I talk at banks. Right now I am trying to call their toll free numbers and do not get any response.

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I owned a company that funded small businesses, micro-businesses, and mezzanine corporations. I searched for information on how you can start. Information is limited. I wonder why it is such a well kept secret. Possibly because there is lots of money to made financing business, but there also is a lot of risk. The only info is http://www.businesslenders.com/ why_history.htm My advice is, unless you have unlimited financial resources, start small with micro-loans. They are easy to do and their is tremendous funding out there for companies and organizations to give consumers. Grants are available through the government for the micro-loans but only to organizations who give the loans. Banks also offer money as well as foundations. If you have any questions contact me. I will assist you and if I do not have all the answers I will try to get them

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They are usually tied to prime plus in our area unless your a big developer. The terms are not as good as home mortgagees.