Lending Partner for my Empire

[Chad M.]

Hey BP!! I'm relatively new to real estate investing and ready to scale up. I currently have two single family homes in Denton TX (both cash flowing) and looking to buy a multi-unit property in the coming months. 

Instead of working with larger more traditional lenders, I thought building a longterm partnership with a smaller local bank would help build my empire faster and more efficiently. This is what I'm being offered: 

• "We will finance 80% of the purchase price or appraised price, whichever is the lesser. We can finance out to 20 years .Rate will be determined based on credit score, and loan amount. Rate is good for 60 month, and then there will be a 5 year rate adjustment"

This doesn't seem like a good deal, and wanted to get thoughts from the community before I engaged again with this particular lender. Whatcha think?

[Stephanie Medellin]

@Chad M.  I would absolutely try to max out on fixed rate conventional loans before going with commercial terms, only because I prefer fixed rates.  Conventional will allow up to 75% on investment properties, so that's one downside.