What Do You Think Of This Deal
I bought a 14 unit 3yrs ago for 475K , financed 370k @4.75% ,3yr balloon at 20yr amortization. Nice building, 100% occupied. The bankers deal now is 7.25% ,3 or 5 year balloon, amortized at 17yrs to 25yrs--my choice. $50 loan renewal. My credit is excellent, good income and solid cash reserves. Is it a deal?
So do you think 7.25% is a fair going rate for commercial investment properties? I was hoping for 6.5%.
Shop it around, if all things are as good as you say then you should have multiple banks that want to lend you the money.
Also consider what the difference in annual savings at 6.5% & 7.25% and is it worth your time to work for the .75% improvement.
No pre pay penalties
75% LTV
6.54% fixed for 10 yrs
30 yr am
[addsig]
Sorry to say this, but you have really horrible timing. People in your same situation were getting 100%/cash out loans in 2005.
Maybe you should click on yahoo finance and read the headlines. The guys who were doing these loans are fighting Ch 11. And the lending money tree has rotted away, unless you have 10% down and good credit, its going to be rough.