Looking to get my second multi unit - currently have a duplex and looking at a triplex. Banks only offer commercial/investment loans for a second property, and it looks like there’s nothing under 5-6%. Seems pretty high and definitely hurts the overall numbers. Is that pretty standard for what I’m looking to do?
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Brendan Chase 6% seems to be about the going rate for my commercial mortgages. Note I personally haven't come across any 30 year commercial mortgages although I hear they can be found. I'm around 6% on 20 year loans.
Flipper/Rehabber · Member since 2018 · 18 posts · 5 votes
7y
@Tom S. I am using finance of America and it’s an asset backed loan at 6.875% for a fixed 30yr
Do you or anyone else suggest another commercial option that has cheaper money? There fees are a little high too
1495 for ordination
500 closing
295 llc review
790 for something else I can’t remember
Looking for something maybe a 2 5 or 10 ballon payment amertized over 30yrs any suggestions would be helpful
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
7y
@Nick D. You can try calling around to local banks in your area and see if the terms are any better. 6.875% for an asset backed loan isn't too bad. Most of my rates, as mentioned above , are in the 6% range and that's with a personal guarantee. My banks are all in VT and only lend within state.