Standard commercial lending terms

[Charles W.]

Hi all,

I've been trying to do my research into commercial lending terms. Based on all the threads on LLC vs operating in my own name I have decided it is probably best to operate under an LLC. Since as an LLC I cannot use conventional funding I've been speaking to local banks about commercial loans for doing my acquisition and rehabs.

I have spoken with several local banks who do renovation loans and have been a bit surprised by their terms.

The terms from both local banks have been a 5 year loan, 20 year amortization with a maximum loan of either 65% ARV or purchase price + rehab whichever is lower.

Are these terms consistent with what others have found? I am looking at loans between 40-60k. I was expecting I'd be able to get closer to 80% LTV on the ARV.

If these terms are pretty standard, how do those of you operating under LLC's fund your deals if not with commercial loans?

I should also mention I'd like to primarily buy and hold only using fix and flip to generate my down payments for more buy and hold.