Commercial Lenders and Classic Terms

5 Replies

Here is a question for the group that has probably been discussed a couple of times. For the newbies like myself, who do you use for commercial financing? Are there any investor friendly institutions that are willing to finance deals for a new investor with no experience? And, what would a classic loan look like in terms of interest rates, percentage down, points, years, etc. for someone in this fledgling stage of their journey?

Tarik Turner - Thanks for your response to my initial post. Currently, I am looking at a rental loan because the building doesn't need any work. It appears as though the current cap rate is 7% and the projected cap rate could be around 8.4%.

Partners Bank is giving 4.1%, 20% down, 25 year term with interest that resets every 5 years (based on prime). Loan is commercial, they want you to close in LLC or other corporate structure.

20% down does not have to be  your money. You could put in 5%, have the seller hold a 15% note. 

They do business in Maine, New Hampshire and Northern Mass

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