Need Funding for Multi-Family $1.5M to $2.5M

[Brady Pevehouse]

Currently vetting 2 sites, and not happy about current lending options my client is being presented with. 

Looking for a potential cash flow financing basis with 25% down on under-performing investment 40+ units in Florida.

Also interested in loan origination options that are available. I have seen some lenders offering up to 2 pts origination, but I imagine they are asking 4 to 7 puts up front from my client as well as a 9+% rate.
Where is the best place to look outside the box considering my buyer does not want to get into an investment group for a cash purchase.

It has been a couple of years since I have done a commercial lending deal, but I've got the buyer and feel he should have better options. Current lender is very conservative and is offering prime + 1.5 on real estate only, on the lower of existing value or replacement cost.

Am I wrong to assume, better financing exists? I know the current lender can perform quickly, but wouldn't any lender in that scenario? (75% LTV on the lesser value)

Any insight on current SOP is appreciated..

[Nick L.]

Are you saying your client is being offered financing at 9%+ with 4-7 pts up front? That's nuts. 

I'm currently working on commercial financing for a smaller rehab deal in TX. Typical terms are a floating I/O note during rehab, converting to a miniperm at 5.5% fixed for 5 years with 1pt origination. Buyer puts 25%+ down and there may be a prepay penalty.

Your client will just have to dial for dollars. Call 5-10 local lenders of various sizes. For each one that declines, ask for a referral to another. By the time he gets through this list he will either have found the best terms available or figured out he is unfinanceable.