Updated almost 8 years ago on . Most recent reply
Financing options for optimal cash flow!
I’m just starting out in commercial real estate, so the banks (community banks) are giving me standard rates. (5% interest, 20 year amortization, 5 year balloon payment, with 20-50% down). With these rates I’m having trouble finding cash flowing properties! I’ve heard about owner financing, HUD loans, and SBA loans. I’m not sure which is the best option for me. What would you guys suggest?
Thanks
wishing you all the best!
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Todd Dexheimer
#2 Multi-Family and Apartment Investing Contributor
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Todd Dexheimer#2 Multi-Family and Apartment Investing Contributor
#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
If you can't cash flow well at 5%, 20 year amortization at 20-25% down, then the issue is not the financing terms, but the deals that you are looking at buying.