Large Multi Family-15,25 Or 30 Term
i am in negotiations for a 48 unit apartment complex and am about to look for financing. the seller is willing to take back a 10% 2nd note. How common are 30 year terms for large multi's? Are 25 yrs easier to obtain. Thanks in advance!!
It depends on what packages are being offered from the lenders at this time, in your area. It is quite common to get a commercial loan amortized out for thirty years. Lets face it, its a standard.
The best way to look at it is through the Lender, a safe secured loan with high profits (interest), from a credit worthy borrower will peak there interests. Some lenders will prefer a longer term, other will want a shorter term. If your mortgage broker is any good you can ask him/her what is being offered and then try for those types at that time.
The mortgage brokers get a list every month from different lenders offering there particular types of loans and the criteria that must be met for that package. That being said, ask your mortgage broker who has advertised repeatedly, or what is being offered at that time for apartment complexes in that price range, and then meet or exceed your criteria to what they are asking in your presentation. Make sure the mortgage broker you are dealing with will spend at least 1/2 hour on the phone with you going over what is being offered at the time versus what you are asking for, and then narrow it down to a couple that you will present your scenario to. Also make sure that your mortgage broker has access to the underwriters, or an "in person" from the lender, before they present there package so that they can make a preliminary call. This way you wont waste valuable time on a maybe. Also make sure that your mortgage broker will tell you everything I have written. If they will confirm this then they will be able to answer your question as to which will be easier to get at this time a 25 or 30 year loan.
Good Luck,
Kyle
I would go NO SHORTER than 25.
Conservative banks will be 15-25 years.
Mortgage brokers 25-35 years
Some large investors (insurance companies, etc) Will do 40 and 50 years.
What are your priorities??? Cashflow or Equity buildup??? That's really all it boils down to.
Lastly, if you have a 30 year Am and you want to pay it off in 15 years, you can....just double your payment. HOWEVER, if you have a 15 year mortgage and want to pay it off in 30 years, you're screwed unless you refi. You'll get a slightly better rate if you go with a shorter am, but I don't think it's worth it for 9 out of 10 investors.
I agree with hibby.
Besides, we are at the lowest interest rates in 30 years, borrow as much of this low interest money as you can for as long as you can.