Is commercial lending cheaper than residential right now?

[David B.]

Hi there, 

I was recently interested in investing in a ten unit complex, and the lender I was working me with quoted me @8.5 percent. Also, I've watched the SFH market go into the 6-7.5 percent rates.

however, when I was working with a friend to help underwrite the ten unit complex deal, he told me he was getting quoted on rates in 5.5%  range. I also heard someone say this on a podcast recently.

is it true that commercial lending is cheaper at the moment? Should I be looking more for commercial deals cuz of cheaper money?

Would love your insight. Thanks! 

[Dave Skow]

@David B.- the 5.5% comm loan you heard about is  prob a short term arm loan ...commercal loans  are  definitely  not  better/ lower than residential  ( unless you  locate  a  very unique  comm source )