Hello Fellow investor,
I am brainstorming and have called all my local institutions, read all the junk provided by gurus, but other than private or hard money, could anyone please recommend or PM any big bank that lends under the following or similar terms?
*75% LTV (based on market value) Not LTC since I have not had the properties for more than 1 year. (one I have had for 11 mo the other only 4 mo)
*Estimated Market Value of both properties around $200k seeking $135K to $145k
*Both properties rented producing over $1.9k per month
*Seeking at a minimum, 25 year amortization with 10 year balloon payment.
*Properties held in an LLC and not reported on personal credit.
*both properties located in Georgia.
*I have 750+credit score and $100K+ regular salary
Thanks in advance for reading this post any any recommendations or suggestions
I would place this in the MarketPlace. You are looking for money.
What you are asking for is possible, although I will say you didn't mention a fixed rate period. You are probably more like a 5 year fixed rate with an adjustment. Some markets are ballon markets and some are fully amortizing, however no local/regional banks (small balance commercial loans) provide fully amortized fixed loans past 7 years. If they did it would be a very rare case to appease a large relationship. Local/regional banks are worried about interest rate risk (as you and I are). You are looking for a small commercial lender i.e. community/local bank, regional bank, credit union. You've stated that you have called everyone in your area, well I'm sure you've missed a few. Ask other real estate investors, brokers, insurance brokers, and property managers for recommendations. Specifically in the small rental real estate space <$500k. Finding the right banks and building the right relationships is key (and not easy). Don't give up though!
You are having issues, 1 because you probably don't have an existing relationship, 2 because you are pushing a few guidelines that most banks follow and 3 because your loan size isn't extremely attractive.
A lot of local banks don't want to cash you out of your project within a short time frame especially without a relationship. The right bank should be able to do the loan though. 6 months seasoning should be acceptable for most local banks however many have guidelines that go out past a year. 25 year amortization is possible however once again many will over offer up to 20 year am. They might say they have a 25 year option however that's only for existing relationships. You're probably looking at this if you find the right bank....
5 year fixed loan
20 year amortization
Loan in LLC with personal guarantee (but doesn't show up on credit report)
DSCR > 1.28
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