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Felicitas Oe…, Real Estate Pro in Brooklyn, NY

How does one buy a small commerical prop. in Brooklyn NY and turning it into a 2 fam. residence? I am more interested in the financing of this

Asked by Felicitas Oefelein, Brooklyn, NY Tue Jul 30, 2013

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Carefully, there is much to consider before the financing of it. Does the zoning allow you to do it?

Is it presently occupied or vacant? If it is occupied do you need the income to qualify for the purchase?

If you are buying it to convert, it is allowed, do you need additional money to do the construction?

If it is a construction loan, do you plan on living in it when it is complete? If so you may want to see if the bank will provide you the mortgage to buy it, the construction loan to renovate it and the end financing.

Depending on your relationship with the bank ie: have you done this type of development before? you will most likely need 20 - 30% down payment.

I would speak to a LOCAL bank (saving & loan) not a national lender, as they will be more likely to make the process go smoothly.
0 votes Thank Flag Link Thu Aug 8, 2013
All good points. No I have not done anything before like this. Its in a residential zone so the conversion is not an issue. The seller operates a business out of there now and would vacate at closing. I could get filings done before that date. I have no problem with the 30% down. I am really having more of a hard time with the loan. Do I get a commerical loan then change it to residential once Im done? Commercial loans are so hard to apply for no? Im pre approved for a residential one. This is the more confusing part for me. I am an designer and work with architects all the time so that part is easy for me, the financing is the issue that stops me..
Flag Thu Aug 8, 2013
Scott has a good point. Consult with a mortgage broker and atty who can better guide you in your transaction.

Best Of Luck
0 votes Thank Flag Link Tue Jul 30, 2013
You should probably consult personally with a mortgage professional that has experience with commercial/construction loans, also an attorney well versed in these types of deals.
0 votes Thank Flag Link Tue Jul 30, 2013
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