Commercial rehab loan - what to expect?
I am in negotiations for a 5 unit office building. In my single family business I used hard money for purchase/rehab then I refinance 3-6 months after purchase.
This strategy wont work on the commercial building because rates are too high and I wont be able to refinance for 1-2 years after I get it stabilized.
What are typical terms for a bank rehab loan? Below are the rough numbers I have worked out on the purchase.
Purchase price - 275K
Improvements - 80K
Seller willing to carry the 20% down payment.