Commercial loan first-timer (6 SFR package deal) - a little help?
I just got pre-qualified for a large commercial loan to acquire a package of 6 SFRs. (I have 7 SFRs now, 6 of them acquired in the last 14 months using a mix of conventional, hard-money, and cash - with all now under long term Fannie Mae loans). It is not clear whether this package deal will work yet, but I needed a pre-qual to submit with a Letter of Intent to see if the seller is willing to negotiate. The likelihood of getting to a deal that works for me would be higher if I could get a little better rate and amortization. Am I likely to find much better terms on a commercial loan than below?
75% LTV (based on purchase price)
5.75% interest rate
20 year amortization (5 year fixed rate)
Are there private lenders out there who would do a similar rate over 30 years or lower rate over 20? I'm thinking of folks who would otherwise be buying annuities. If I get my foot in the door. I'll have 30 days to perform due diligence and arrange financing. Where else should I look? I have not been attending local REIA meetings. Guess that would be one place to start.
Also, I understand it is OK to borrow down payment money (at least to some degree) where these commercial loans are concerned. I can comfortably cover about 1/2 the total out of pocket (including settlement costs and some rehab) with cash on hand, but would prefer to borrow more of it from family, friends, or whoever - should I ask the seller about financing a portion of the downpayment?