Commercial loan for investment home purchase
Looking for advice on getting started with first commercial mortgage in our LLC. Been in property mgmt business for 2 years and looking to put properties in the LLC (out of personal name) in 2022. Thank you!
Most Popular Reply
Hi Wendy,
All but one of my properties are with a small town community bank and are commercially financed. Be prepared for higher interest rates than conventional residential and shorter amortization schedules and loans maturing in 5 to 10 years. Currently I am at 4.25%, amortized over 20 years, with a capped adjustment at 5 years and a balloon payment at 10 years. The pros are, easy qualification based mostly on income potential of the property. Very low fees and closing costs, ability to reficance out to conventional loans if you need or want to, ownership in LLC's.