Turning an old building that has seen better days into a well-loved and useful structure that the community can be proud of comes with great reward as well as frustration. Here, then, are some tips for your next repurposing project and how to find Texas Commercial Lending for this type of venture.
There’s a timeless feeling when you walk into an old building. A sense of history infuses its walls, unique features draw your attention, and careful attention to detail in moldings and form bring an appreciation for carpenters of yesteryear. Enter the repurposer. These individuals and companies see past what buildings were and envision what they can be. Old schoolhouses, carriage houses, barns, churches, banks, train cars, firehouses, warehouses and industrial spaces have been repurposed into homes and apartments. Even grain silos have been turned into luxurious round living quarters. America’s first indoor shopping mall in Rhode Island, a historic building over 200 years old, has been turned into 38 micro apartments that measure anywhere from 225 to 300 square feet. Think tiny house and no, there are no vacancies.
If you’ve got your eye on an old, abandoned structure and can see the beauty beneath the cobwebs, consider the following:
● Zoning. If your structure was once a commercial building, make sure that you can petition to change the zoning to residence.
● Risk. There is an inherent risk with an older building. For this reason, it’s recommended that you obtain an inspection. Pay close attention to electrical and plumbing systems. Maintenance may also be a consideration. Surprises are inevitable, but not all are negative. On the upside, there may be governmental incentives. These include federal rehabilitation tax credits, local incentives, low-interest loans, and grants. Keep in mind that tax credits do come with some restrictions regarding the preservation of the property.
● Location. People enjoy living downtown. Just look at the industrial building turned loft industry. These early lofts were created with artists in mind—an affordable place to live and work with just the right light shining through the large windows. But that was 1970. Lofts have now morphed into demi-lofts or loft-like apartments, new-construction lofts, and even condo lofts. And urban living no longer comes cheap.
● Numbers. Texas Commercial Lenders will want to know that your net operating income (NOI) will support the debt payment.
Some of the most successful repurposing projects have been in the world of entertainment, hospitality and scholastics. Schools have grown from churches, hotels from office buildings and movie theatres from old schools. Cities and communities are often very supportive when it comes to preserving historic buildings and will work with you as best they can, especially if you are considering re-energizing historic downtowns, such as has been occurring in Detroit. Talking with local residents can give you an idea if they are aligned with your vision which can make a tremendous difference.
Funding Adaptive Reuse Projects
In addition to grants and other incentives, funding from alternative Texas Commercial Lenders can be a quick and often painless process for acquiring capital. Traditional lenders often shy away from commercial projects that carry those inevitable surprises. Private hard money lenders, on the other hand, look more to the project itself. Construction financing through these individuals is popular due to their flexibility, reliability and documentation requirements. Interest only payments are often the norm until the project is complete.
Private hard money Texas Commercial Lenders are a perfect solution for those wanting to get into the repurposing craze.
At Level 4 Funding, we offer bridge loans, construction loans and Texas Commercial Loans , one of which may be just right for your project. Call us for a no obligation quote. Approval occurs in as little as 24 hours.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.