Updated over 3 years ago on . Most recent reply
I got a building with ton of equity worth around 5million.
In this market i don't know what kind of loan or line of credit i should go with. Lenders are giving me 3 million LTV.
Should i do a line a credit buy a building cash and refi and repeat?
Should do 30 year Amortization and lock in the Rates?
I need some big investor help here.
Most Popular Reply
You say lenders are giving you 3 million LTV. That doesn't make sense. Sounds like lenders are offering you financing at 60% LTV if they are offering 3 million on a 5 million valuation.
The benefit of a line of credit is that you don't have a payment until you pull out the money. So you aren't burdened with a big payment until you find another deal.
It sounds like you own a commercial property based on the wording of your post. That means that you probably won't see a 30 year amortization, you'll be looking at a 25 year amortization. And a 25 year fixed is also unlikely. The lender will probably try to give you a 5 year fixed, in my experience.
All of that being said, I don't know how you've landed in this position of owning a 5 million dollar asset free & clear. But if you don't have experience investing in commercial real estate, you should really just sit tight, spend a year getting educated, and deploy these assets when you're more prepared.