Pre first deal guy here. My partners and I have begun setting our plan in motion over the past couple days. We talked to a lender in the Greater Milwaukee Area, Waukesha State Bank and they were offering the following for LLC based real estate investing:
10% down, no PMI, 5.125%, 90k min loan amount, 5 year note, fee for refinancing with another Bank, early repayment fee(when using lent money).
Our group will most likely be pre-approved for about 80-90k purchase price with a more traditional 25% down 30 year fixed around 4.5.
Would this be something worth considering if we find a deal in the 100k+ range we want to move on? Any advice or experience would be appreciated!
The interest rate and 5 year term with a pre-payment penalty are definitely in the range from what i have seen in the commercial lending sphere in the Milwaukee area. I have not seen any lenders who require less than 20% down though.
So they offer 10% down financing for all non-owner occupied properties?
Correct Darren, although I am very new I was also quite surprised. I also forgot to mention, they also allow you to roll expected repairs into the loan with less oversight than the 203k.
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