Commercial Loan for 18-Unit in Rossville, GA

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Commercial Loan for 18-Unit in Rossville, GA

Gary Michalske
Murfreesboro, TN · Member since 2016 · 47 posts · 10 votes

Hi B-Per's,

I'm under contract to purchase a 18-unit apartment complex in Rossville, GA.  I live in Murfreesboro, TN and have a local lender, CB&S Bank, ready to process a $700K loan at either 5.4%, 20-yr AM, 5-yr term...or...5.8%, 25-yr AM, 5 yr. term.  I'm thinking of shopping around for another lender but wanted opinions on the financing being offered.  Does it seem competitive in today's market?  They have already scheduled the appraisal which will be complete this week.  If I decide to pursue other financing, I won't begin until I see where the appraisal comes in.  What are your thoughts?

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  • Roman M.
    Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes
    7y

    Yes. Shop around. I just saw a 13m loan closing at 5.75% for 5 yr fixed. 

    You might see a higher rate but it is all about who will actually funds the loan. 

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  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    7y

    @Gary Michalske

    It's competitive, but shop around anyway. Consider hiring a mortgage broker.

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  • Tony CrabtreePro Member
    Rental Property Investor · Murfreesboro, TN · Member since 2014 · 75 posts · 21 votes
    7y

    I would say that is actually pretty good. I live in Murfreesboro and am a realtor here. We are closing tomorrow on with a 5.5% 20 yr AM, albeit a smaller property. so I'd say that is pretty good. 

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  • Dan Wallace
    Golden, CO · Member since 2016 · 145 posts · 61 votes
    7y

    For a smaller loan amount, the rates aren't bad but not great.

    If the loan amount was over $1MM I would expect rates starting around 4.5 to 5.0%, 5-year term/30-year Am depending on the market tier.

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  • Gary Michalske
    OP
    Murfreesboro, TN · Member since 2016 · 47 posts · 10 votes
    7y

    Thanks to all.  I found a potential rate in the mid-4's with no origination fees.  US Bank.

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