We continue our discussion with special guest Isaac Grant, and today we’re going to talk about different types of loans and owner occupancy.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Isaac Grant, Eugene commercial lending officer
Marica Edwards: Isaac Grant is joining us again today. Thanks for being here Isaac. He’s with Northwest Community Credit Union as a commercial lending officer, but not just another lending officer, an excellent mind who is creative and has done a lot of things that we didn’t know could be done. So, appreciate your input today Isaac.
Isaac Grant: Thank you so much, absolute pleasure to be here.
Bob Nelson: First of all, let me mention. Isaac funded my transaction for me that’s allowed me a $22 million 1031 exchange. I had a great time doing that transaction. I’ve worked with a number of loan officers over my 50 years, Isaac, you’re the best.
Isaac Grant: I appreciate that Bob. That’s very flattering.
Marica Edwards: Well, let’s pick up where we you left off last program. We talked about some business owners would like to occupy and own the same property, and wonder if it’s a pipe dream that leasing has been going on too long and they say, “Why am I paying rent to someone else?” Do you work with those folks?
Isaac Grant: Yes, Marcia. We absolutely do. I think it’s important to note the different types of owner occupancy and the different types of loans that are available out there to folks that own their own business and want to own the real estate that they operate their business out of. First and foremost, if we’re looking at true owner occupied property, your business operation is going to own that piece of real estate, needs to have at least 51% of the square footage of that building for it to be conventionally considered as owner occupied.
If you’ll say in a business that operates out of an office and you want to own an office building with multiple units but you’re only going to occupy say one of those 10, you’re going to have less than 51% of the square footage of that building, we can’t classify that as owner occupied.
Marica Edwards: You can still loan on it, it’s just not going to have that structure?
Isaac Grant: Absolutely. We’re just going to treat as a passive investment as opposed to an owner occupied investment.
Bob Nelson: That’s a what? Like an SBA loan as an example, if it was over 51%?
Isaac Grant: Yes, Bob. We can look at it a couple of different ways. If the business wants to put additional cash down to have more equity in the property, then we can look at it through conventional financing with 20 to 30% cash down. If they don’t want to use up their cash reserves, they don’t want to deplete their own funds, we can look at use in the SBA and they can put maybe 10 to 20% cash down, in that way be able to get into the property also.
Marica Edwards: So if we piqued your interest out there, you’re a business owner and you want to own the property that you’re going to each day for work, call Isaac Grant. He is at Northwest Community Credit Union.
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.
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