What is the market for commercial loans right now?

[Adam Craig]

I just filled my 6 unit office building that I purchased vacant in October 2019, rehabbed and rented. Its bringing in $5200/month in rents and I am looking to get my lenders paid back.

What is the market right now for this type of deal. I have 3 commercial bankers I have worked with on the single family side that I plan to run this past. The one I sent my loan request packet to said they could offer about 275K on the loan when I was looking for 320K and my loan balance is 305K. He said this was due to the climate.

Based on my figures of (NOI/CAP) - the building is worth 425-450K so I didn't think getting 320 was too unreasonable. I am going to sharpen up my request packet and contact more lenders.

What should I expect? Bad time to refinance?

[Adriel Hsu]

It's not just NOI and CAP. Lenders are heavy in reserves right now and want to see 1 years worth of mortgage payments after the refi. Also many are lowering LTV because of whats going on. Keep looking around, but realize its a completely different world than 6 months ago and keep your standards realistic