Hello everyone here at BP !
I'm looking to talk about commercial financing. Looking at a few buildings, one is 6 units and the other is 9 units. I have the down payment. I have the credit score, and I have another rental property but it has been less than a year of ownership. From what I know usually it's a 7 year balloon payment fully amortized (30 years) and the property Has to have at least a DSCR ratio of 1.25.
There are a PLETHORA of CRE financing options. You'll find anything from 3,5,7,8, 10, or even 25 or 30 fully fixed on a 15-30yr am. You are correct, that the market DSCR is 1.25, however there are programs out there that are lower and higher, and there are even programs that have no Min DSCR requirement - just have to know where to find them! All of this will be dependent on your property - each lender will obviously have their own parameters and lending criteria, pts, rate etc, and it's all based on a risk assessment (YOU and the property are the risk assessment). They'll start from their best rates and terms, and work backwards based on what you/your property does or does not meet. It's a matter of locating different programs and finding the one that works best for you.
I'd be happy to discuss more with you, feel free to give me a call any time and I'll walk you through some of the basics. Send me a PM and I'll send you over my number.
@Marty Johnston thank you for the very informative reply ! For me I'm seeking commercial financing because my DTI is an issue. I mean just like everyone, if I had the cash laying around I'd be a millionaire in a year lol. I want to squire more cash flowing properties and I'll have to go commercial. Which I don't mind. I like the idea of a 7 year balloon payment because of the numbers work, in 7 years I'll own a cash flowing property free and clear. Then I can hopefully Cash out Refi and use that to buy another. And so on and so on.
I'll shoot you a PM and we can talk.