Commercial Loan Terms—what are you guys getting?

4 Replies

I'm curious if I'm getting good rates from my local lender. I've done about 10 deals with them and they're extremely flexible. Right now they're loaning me 75% LTV on a rehab house based on what the appraisers opinion of what the ARV will be. So they're very flexible with me but here are the general terms I'm working with

25% down

5.5% Interest

15-20year AM

5 year balloon

I'm fully aware that I'm able to get a secondary market mortgage then quit claim to my LLC but because all of these are in partnerships I don't want to do that at the moment.

For a commercial lender what kind of terms do you get?

@Ben Dols

Need more info. Are they lending you money while the house is under rehab? Or is the home already rent ready. Is this for purchase or refinance? What is the seasoning required on title for them to lend?

Terms I work with are normally:

25% down

5.875-6.125

30 year fixed/amortization

@Nicholas Covington

Let’s say for this question I’m asking specifically for a post rehab house that I’m looking to refinance.

How are you getting fixed 30 years on a commercial loan? We're talking loaned to an LLC rather than an individual correct?

I'm getting 20 year am, 5 year balloon at 5.67%.  These were the terms of my latest refinance about 4 months ago.  I would venture to guess that if I were to try to buy or refinance a property in the current rate environment, it'd be closer to 5.25-5.50% with the same amortization period and balloon period.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here