Richmond, TX · Member since 2017 · 31 posts · 2 votes
Hello BP members,
I am excited about offer getting accepted on our first MF Investment property in South TX market. Now comes the hard part, I am looking for a commercial loan with 20% down and 25-30 year term with 5% or lower interest rates. Got excellent credit and down payment is not an issue.
Looking for recommendation from BP members on Bank/Lenders that can close quickly and provide excellent rates. Thanks in advance.
Bhai Shah typically interest rates would typically be 6-12%
at minimum get 3-4 quotes at the local bank the multi fam is located in. Mix it up between
-Banks
-Credit Unions
-Mortgage companies
Ask to speak with the Loan Officer, present to then this deal, your down payment, and excellent credit score they should welcome you with open arms...and experience or atleast have a partner/team ready.
Questions to ask Loan Officer:
- What kind of loan programs do y'all have for rental properties
- What are the loan amounts y'all typically lend on
- Current interest rates
- What are the terms
- Any other information I should know
Best of luck
How many units? How much are you wanting to finance? If it is 2-4 I would pursue a traditional mortgage in order to get the terms you are looking for. 5+ units you may have to pick and choose what terms are most important to you.
Where I lend, doing a commercial loan on 5+ units I could do 20% on an adjustable rate, but the rate would be over 5% and the I typically do 20 year terms.
Or I could bend on rate and term but I would want more cash down.
If you find someone that will give you all three. I'd be interested in hearing about them because I would like to finance some deals with them.
Thanks for your reply. It's 16 unit property. Loan amount we are seeking is 425k-450k. Would appreciate your input. Rate and Term are more important as I could bring more cash down. Please let me know if you have recommendations for lenders.
Not sure if you got my message. I'm still getting used to the way bigger pockets works. I lend in Texas as well so let me know if I can be of any help.
Bhai Shah typically interest rates would typically be 6-12%
at minimum get 3-4 quotes at the local bank the multi fam is located in. Mix it up between
-Banks
-Credit Unions
-Mortgage companies
Ask to speak with the Loan Officer, present to then this deal, your down payment, and excellent credit score they should welcome you with open arms...and experience or atleast have a partner/team ready.
Questions to ask Loan Officer:
- What kind of loan programs do y'all have for rental properties
- What are the loan amounts y'all typically lend on
- Current interest rates
- What are the terms
- Any other information I should know
Best of luck