Private Money terms for 4-plex in FL?

Question

Can I get an idea of terms people have out there for lending on small multi-family properties in south FL? What I am hearing locally is a little high (interest and points), so I'd like to know what others have seen. Looking at one that is verifiable fully leased and well over 10% CAP rate without speculation.

Thanks guys!

Mike Snyder · Answer

Thanks for the input and advise. The deal fell through for reasons other than funding, but I'll still keep my eyes open for others.

Curious though what the biggest factors are in getting good terms, both percent and points when less than 5 units? Credit score? LTV? Condition? Leases?

Melvin List · Answer

@Mike Snyder how much to you have to put into the project?

Percy N. · Answer

@Mike Snyder, I think the general range of 12%-15% with 2 to 4 points is in the right ballpark.

However, be very leery of "lenders" approaching you online offering "great" terms, especially if they require a "deposit" up-front.

Genuine lenders do not require up front fees other than a minor amount for say an appraisal or BPO. All other fees/points should be paid at closing via your title company.

Just a reminder.

Alex Deacon · Answer

@Mike Snyder i dont buy in Florida but I buy a lot of volume in PA. I can tell you my rates that I pay to private lenders can vary from 8% and as high as 15% with 3 points. There are a lot of lenders on Bigger Pockets that I have reached out to also that can give you some quotes. Your interest rate and terms will depend on your credit, income and your experience level