All Forum Posts by: Jon Riley

 I work specifically in this area, properties too big for your first timers looking for a duplex yet too small to be interesting for government multi financing. The key is calling every single small bank/credit union in the greater area around the property and asking them all what they offer. They will all vary in loan products. Some could be 7% or others could be 8%. Some could give better terms on 1-4 units but worse on 4+ units and vise versa. I rarely see 30 year amortization… I see banks offering 15%-20% down far more often. It’s not too often I find banks willing to let a seller take the second, but when you find that bank it is very useful. The seller wants full price? Have them give you a low 0-5% second or finance it entirely to get the deal done

With all due respect, unrealistic expectations. Swaps are at a 15-year high, so wanting anything under 8% is already wishful thinking, and to top it off, you want to put down less than 25%, which eliminates 95% of lenders right there.

 I work specifically in this area, properties too big for your first timers looking for a duplex yet too small to be interesting for government multi financing. The key is calling every single small bank/credit union in the greater area around the property and asking them all what they offer. They will all vary in loan products. Some could be 7% or others could be 8%. Some could give better terms on 1-4 units but worse on 4+ units and vise versa. I rarely see 30 year amortization… I see banks offering 15%-20% down far more often. It’s not too often I find banks willing to let a seller take the second, but when you find that bank it is very useful. The seller wants full price? Have them give you a low 0-5% second or finance it entirely to get the deal done

Don't think this product exists unfortunately. Most DSCR lenders for 5+ units on acquisitions are at a maximum of 75% down. Also, 12 units is a lot for a standard DSCR loan.

 Hey Jon, 

Is the seller willing to carry? 

You can put 15% down on a complex like this if the seller can carry 15% LTV in second position.

You can also look into tapping Into a HELOC for the remaining funds, or getting a partner involved.

@Jon Riley

I'd start with something smaller.  Can you house hack?

Jon, you will not find any competitive lenders out there that will do less than 25% for commercial properties. Anything 5+ units is considered full commercial and that's basically the difference between 20% and 25% for the dp. 75ltv, DSCR of 1.00>, and good credit - those rates don't seem bad either. Just make sure you aware of the companies lock policy and PPP (pre payment penalty) terms. Gl!

 Hey Jon, 

Is the seller willing to carry? 

You can put 15% down on a complex like this if the seller can carry 15% LTV in second position.

You can also look into tapping Into a HELOC for the remaining funds, or getting a partner involved.