Bob Nelson – Commercial Lending

Today we’re going to talk about commercial lending, with special in studio guest, Isaac Grant.

Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Isaac Grant, Eugene commercial lending officer

Marica Edwards: Joining us today is Isaac Grant. Isaac is here from Northwest Community Credit Union, and he’s a commercial lender. He’s a commercial lending officer, great source of funds locally, who understands this marketplace, and gives opportunities to those of you who want to invest on some scale. Thanks for joining us, Isaac.

Isaac Grant: Thank you both so much, it’s a pleasure to be here.

Bob Nelson: Let’s get into a situation that not very many people are particularly aware of. Let’s assume that I was an investor acquiring a property, or I was an investor acquiring a property, but for my occupancy. For instance, an office building, an industrial warehouse, so forth. Is there a difference in how you approach that particular loan?

Isaac Grant: Yes, Bob, there is. I think firstly, it’s important to note that at the credit union, we work with both of these scenarios. We’ll work with the passive investor that’s looking for that passive income. They’re going to invest in real estate, but they’re maybe going to have a property management firm who’s going to look after that property for them. They’re going to do their due diligence, and look at the income sources available from that property type.

We’ll look at that loan maybe slightly differently than, say, an owner occupant. As you say, you have a light industrial company, or office space, and you want your business, your operation, to own real estate, for whatever purpose that may be. Maybe it’s so you can write off the interest income, maybe it’s because you’re fed up working with your landlord, and you don’t want to lease property anymore, you want to own. You want to have some sort of investment in real estate. Then we’ll work with those folks, also.

Bob Nelson: As you approach that situation, let’s assume that I am the owner occupant, or to be the owner occupant, how would you look at me differently, specifically?

Isaac Grant: When we’re looking at a passive investment, we’re looking at the income. When we’re looking at an owner occupant, we’re also looking at the income, but we have to look at it slightly differently. We’re going to look at how much income does that operation or business produce on an annual basis, to be able to support the level of debt that they’re taking on.

Bob Nelson: So, there is an element of risk if owner occupant might be a little different from investor.

Isaac Grant: Yes, sir.

Marica Edwards: To understand this completely, contact Isaac Grant. He’s the commercial lending officer at Northwest Community Credit Union, and he’s just a phone call away. Wealth of information.

Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.