commercial real estate rates for 2023?

Question

What is a good rate for commercial real estate starting out 2023? Looking to finance 1.5 million. Thanks in advance for your help! Let’s start off 2023 the right way!!

Henry Clark · Answer

When do you plan to lock-in your loan in 2023?

How far along are you with your lender?

Do you have a pre existing relationship with the lender?

$1.5mm deal.  What size of investments have you been doing?

What is your occupancy and remaining lease periods?

What type of asset?

What is your existing investment LTV load?  No answer needed, but you will need to consider.

Russell Brazil · Answer

Im getting 5's on 3 year calls and 6's on 5 year calls

Erik Estrada · Answer

Hey Matt,

If you can qualify for a full doc commercial loan, I am seeing rates in the 5s, fixed for 7 years, 30 years amortization, with 3 years of interest only.

If the goal is to put as little money down, upgrade the property, and increase the rents, you may want to look into short term financing.

Scott Wolf · Answer

@Matt Mulvaney what @Sasha Mohammed said is 100% right. Nowhere near enough info.  I've seen a 5.5% bridge at 50% LTV up to 16% for fix-n-flip.  Happy to chat more to see what you're looking for.

Sasha Mohammed · Answer

Hi Matt! There isn't enough info in your post to give you much back. Here are a few followup questions to narrow it down:

- estimated credit score?- Estimated LTV on that $1.5m loan (or est. value)- is this a purchase? r/t refi? cash out refi?- what type of property? - how many units?- short term financing? long term? what's the goal?i'd be happy to get you ballparks, just need a bit more info in order to give you accurate info :) Happy 2023!