Is this a good rate for a commercial portfolio loan?

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Is this a good rate for a commercial portfolio loan?

Johanna R.
Investor · Long Island City, NY · Member since 2014 · 108 posts · 18 votes

Hi!

I currently got pre approved for a 250k blanket loan for my 5 rental properties
that are clear + free, I’ve got excellent credit and the terms are:

6.65% for 30 years

75%LTV

1% origination fee

— are these good terms or can anyone direct me to a lender?

Thanks!

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  • Clay SmithBusiness Member
    Investor · Louisville, KY · Member since 2013 · 419 posts · 244 votes
    11y

    no, rate and fee too high

    LREI Property Management LLC4.6449 Reviews
    WebsiteView Page
    0Reply
  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    11y
    Why would you need a loan for your 5 rental properties that are free and clear? Did you mean you used your 5 rental properties as collateral?
    0Reply
  • Johanna R.
    OP
    Investor · Long Island City, NY · Member since 2014 · 108 posts · 18 votes
    11y

    @Clay Smith Would you have a lender you can recommend?

    @Jai ReddyYes Im trying to re-fi them so I can invest more

    0Reply
  • Che Chiu Wong
    Jersey City, NJ · Member since 2015 · 280 posts · 98 votes
    11y
    Originally posted by @Johanna R.:

    Hi!

    I currently got pre approved for a 250k blanket loan for my 5 rental properties
    that are clear + free, I’ve got excellent credit and the terms are:

    6.65% for 30 years

    75%LTV

    1% origination fee

    — are these good terms or can anyone direct me to a lender?

    Thanks!

    30y fixed (I assume it's NOT something like 5y fixed but amortized over 30y) commercial loans are hard to come by. It's definitely worth to consider at least.  1% fee is somewhat standard too.

    Johanna, would you please share your bank contact? (PM is better)

    0Reply
  • Ben Bakhshi
    Investor · Atlanta, GA · Member since 2012 · 408 posts · 37 votes
    11y

    I think that is fair, especially for 30 year fixed. Who did you go through? We ended up paying 3 points, but got a 6% fixed rate for 30 years.

    0Reply
  • Chris L.
    Investor · Fort Wayne, IN · Member since 2009 · 391 posts · 257 votes
    11y

    Check with @Sean Richway.

    He might be able to help as well.

    0Reply
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