Automotive Properties: The Small-Balance Commercial Opportunity - Silver Hill Funding

Automotive Properties: The Small-Balance Commercial Opportunity

Automotive Properties: The Small-Balance Commercial Opportunity

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Automotive Property

Borrowers looking for financing options for their automotive properties can sometimes have a hard time finding the right lender to accept their deal. Banks and most commercial lenders are known for declining automotive property applications for various reasons at a high rate.

However, Silver Hill Funding is one small-balance lender that specializes in providing funding for these small-business owners and investors. Below is key information you need to know about automotive properties and working with Silver Hill on these deals.

Strengths of Automotive Properties

Automotive properties are always in demand because consumers are constantly in need of automotive care. Whether it’s time for an oil change or new tires, the need for mechanics and auto-repair shops will by no means fade away.

Also, these property types are not hard to find. Many times it feels as if there’s an auto shop on nearly every block. If you’re looking for new clients, the abundance and high-demand of this property type may help you grow your business.

Challenges of Automotive Properties

The biggest challenge with automotive properties is the environmental concern. Many lenders are hesitant to offer financing to borrowers with automotive properties because of this. Silver Hill mitigates this issue by ensuring that each automotive property we finance has environmental insurance.

Another difficulty with automotive properties is that many times these borrowers have difficulty fully reporting their income. You can expedite the transaction process for automotive deals by working with your borrowers to identify all income sources before submitting a loan application.

Working with Silver Hill Funding

Silver Hill recently announced the addition of automotive properties to its list of eligible property types.

Silver Hill’s program highlights include:

  • Financing for owner-occupied and investment properties
  • Terms of 5, 7, and 10 years
  • LTVs of up to 65% for automotive properties
  • No seasoning requirements
  • Cash-outs

Tint shops, lube and oil change shops, tire stores and mechanic property types are available for funding options. The small-balance commercial mortgage lender is typically indifferent to location type, meaning the automotive shop could be housed in a warehouse, strip mall, etc.

Automotive property types Silver Hill does not offer funding for include car washes, gas stations, and other auto facilities with underground pits. Financing for dealerships is determined on a case-by-case basis.

Marketing Tips

If you’re looking to generate new leads, try visiting owner-occupied automotive shops in your area. The next time your car needs an oil change, take it to the local mechanic rather than the dealership to meet new potential clients.

Cold calling shops is also an option while you continue to build your referral network. Silver Hill’s Marketing Toolkit has a series of phone scripts to help you get the conversation started.

If you have a client with an automotive property who could benefit from Silver Hill’s program, become an approved Silver Hill broker and submit your deal to us.

Erin Torbett

Erin Torbett

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