Lender on a 5 unit in Colorado

7 Replies

I'm looking at purchasing a 5 unit property in Colorado Springs/Denver area and looking for references on lenders with good terms.

In order to make this deal work I believe I would need to find a lender that would do at least 80% LTV, 25 year amortization, and 5% interest.

I know this is hard to come by and I've tried calling a handful of banks and credit unions, however, every either required 25% downpayment or amortization was 15 years. Personally the reason I'm unable to do 25% down is I then would not have sufficient reserves for them to be comfortable lending.

Thanks for any assistance in advance!

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@Brendan Moehn you probably need to call all the local banks and credit unions and to visit most of them. Put on a suit and tie. You might find a loan office that would be sympathetic and get someone to do the loan. It's lots of work but it might pan out. You are not far from what would work. Also what about doing a 3 or 5 year arm and then when you bump the rents you do a refi? Finally, since you are in the commercial space. What is your Debt Service Coverage Ratio? If you can't do at least a 1.25 then you won't get too far. If you have a 1.3 or better then I would say you should stand a much better chance of finding money.

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