Every Tuesday in San Francisco, real estate agents tour new listings together. It’s called the Tuesday Tour. Most people pop in, grab a flyer, and move on.

I stop and ask one question:

“Can this actually be financed?”

One Tuesday, I walked into a building almost no lender wants:

  • Upstairs: SRO housing (shared kitchens, shared bathrooms)
  • Downstairs: a bar and restaurant

That’s two red flags right out of the gate.

Why This Property Was a Problem

Even though the restaurant was popular, the market had turned. The building’s value had dropped sharply.
Most banks won’t finance:

  • SRO properties
  • Bars or restaurants
  • Buildings with messy leases
  • Deals with losses on paper

This building had all of the above.

Then a Buyer Shows Up… Without a Lender

An offer was accepted quickly—but the buyer, Ken, and his agent were new to commercial investing.

They had no lender.
No roadmap.
And deadlines were closing in.

Ken ran a successful sushi restaurant nearby, but that didn’t automatically make this loan easy:

  • Limited real estate experience
  • Down payment partly borrowed from a home equity line
  • Complicated building structure
  • Negative cash flow on the property

Most lenders would’ve said “no” and moved on.

How the Deal Got Saved

Commercial loans aren’t just about numbers—they’re about positioning.

We presented Ken as:

  • An experienced operator
  • Buying a property aligned with his business background
  • Expanding thoughtfully, not speculating

We focused on the restaurant income, explained the SRO structure clearly, and approached a local San Francisco bank that understood non-standard properties.

The underwriter visited the building. The story made sense.

The Finish Line

Loan approved.
Funds in escrow.
Keys handed over.

What looked impossible became a closed deal—not because the property changed, but because the right lender heard the right story at the right time.

That’s how smart commercial financing actually works.

🔎 BROKER’S EDGE – Smarter Real Estate Lending
🤝 Looking out for your Best Interest, and Helping Homeowners, Investors & Small Business Owners since 1990

📞 Steven Hook | Residential & Commercial Mortgage Broker

📱 415-260-9376 | 📠 415-449-3428

🎓 MBA | CMPS | CMA

👉 Schedule a Call
🌐 SanFranciscoLoanOptions.com
🌐 shook@Uamco.com or smhloans007@gmail.com

🆔 NMLS #303544   Ca DRE #00987187

This content is provided for informational purposes only and is not a loan commitment or guarantee of financing. Loan programs, rates, terms, and conditions are subject to change and borrower qualification. Individual results may vary.

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