Investor · Macomb, MI · Member since 2016 · 121 posts · 8 votes
Can anyone recommend a good simple web site to check current commercial loan interest rates for multifamily buildings. I've been poking around online and can't find something quickly. I called my bank (B of A) and got nowhere.
When analyzing a new property I need info quickly.
Investor · Silver Spring, MD · Member since 2016 · 92 posts · 42 votes
10y
Check out northmarq.com/multi-family-rates
And crefcoa.com/apartment-loan-main.htm
Keep in mind there are minimum requirements for Fannie and Freddie multi loans. I'm not sure what size properties you're looking at but something to think about. I'd recommend developing a relationship with your local bank that knows your area as they will be most comfortable with properties you are looking at and will likely work with you better than a larger bank or brokerage - this is assuming the product you are interested in is catered to more local investors and not the regional and national guys.
At the core of it, for multifamily you'll want to be sure the DSCR is adequate. Banks will want at least 1.25x coverage and that is for superior class A product. Be a little conservative there if you're looking at B/C product. If you have to run with a rate, I'd run a few scenarios to see how the property covers the loan, for example between 4% and 6% would likely be safe (assuming no major issues) to see where that puts you. Hope this helps!
Why don't you try to network with Commercial brokers on this site. Rate means nothing if your deal doesn't qualify. Right now, rates are about 200 basis points above 10 yr treasury, about 4.25%. So many other things to consider, term, amort