My partner and I are shopping around for commercial loans for a 5-family we have under contract. Have you worked with a lender/bank/credit union that you recommend? Again, this is for a commercial--not residential--loan. We are looking to finance 75% if possible (though a lot of banks will only finance 70%). Let me know if anything comes to mind.

TD.

Almost any commercial lender will do this type of loan and they can finance it through Freddie Mac if the loan is over $1M. If the loan is <$1M then you can finance it with other lenders. I'd recommend just searching around for commercial lenders around the property. 

Thank you @Antoine Martel , we already have a couple lined up but was wondering if anyone had personal experience (good or bad) with a particular local lender. 

Originally posted by @TD Wolf :

Thank you @Antoine Martel , we already have a couple lined up but was wondering if anyone had personal experience (good or bad) with a particular local lender. 

There are programs that go up to 80% LTV for multifamily.

Thanks @Eddie LeGrand-Sawyer --that's what I've heard, too, just trying to actually nail one down. Waiting to hear back from one that was offering 75% LTV.

Originally posted by @Eddie LeGrand-Sawyer :

Originally posted by @TD Wolf:

Thank you @Antoine Martel, we already have a couple lined up but was wondering if anyone had personal experience (good or bad) with a particular local lender. 

There are programs that go up to 80% LTV for multifamily.

 Yes there are but I would just be careful with getting leverage that much with that way the market is right now.

@Antoine Martel can you say more? I am planning 25% down...This is a buy and hold property that cash flows nicely, with value add potential. Rents are pretty much in line with the market right now.

Originally posted by @TD Wolf :

@Antoine Martel can you say more? I am planning 25% down...This is a buy and hold property that cash flows nicely, with value add potential. Rents are pretty much in line with the market right now.

25% down is good. I would just be worried putting only 20% down right now with the way the market is. Im buying an apartment building now and getting a 60% LTV so that when the market does crash I won't be over leveraged.

You mean in the event that you would need to sell one of your rentals suddenly you want to make sure it can withstand a downturn? With the cash flows we are seeing it would be hard to envision a scenario where, even if the market tanks, we couldn't meet the financing and expenses obligation and still eek out a profit. 

Hello @Antoine Martel @TD Wolf ,

The most popular Fannie Mae and Freddie Mac multifamily products are 80% LTV, amortizing or partial-term interest-only for 7-10 years.

-Going 75% LTV will get you an amortized schedule (30 years) or partial-term interest only for 5-6 years.

-Going 65-70% LTV will get you a full-term interest only product for 7-10 years.

We ended up working with two local banks and have been pleased so far with the experience. Will update you after the closing is complete.

TD who did you end up working with? I've spoken with Leominster CU and they'll go up to 80% LTV on a commercial.

I ended up using Bay State Savings bank. We closed last week. I was also considering GFA and had a good experience working with both lenders. We ended up putting 25% down (so 75% LTV).

@TD Wolf hi TD who did you use for your loans? Still a good experience? Thank you.