What Is A Good Rate?
I am looking into a group of quads. The current invester is unloading 10 quads. What is the best thing to do:
1) Get a commercial loan and buy them in one big block?
9 percent is the only commercial loan on I see on the lenders page is this a good rate?
2) Get 10 smaller loans and pay extra lender fee's for a lower mortgage rate. (7 percent)
So either 10 loans ~ 192k or one loan at 1.92mil
thanks,
Chris
40 units should sell at a commercial cap rate (10% or so) and NOT a 4plex cap rate (often 7.5%).
Often when they sell em like that they'll give the 4plex price not the commercial deal price.
....but that wasn't your question, was it...
What are you bringing to the table?
You can get 100% LTV (or 100% CLTV) loans for 4 plexes pretty easily. Getting 100% LTV on a commercial loan is not that easy.
If you have 25% to put down, go with the commercial rate. You should be able to get it for NO MORE THAN 7.5% (and possible as low as 5%)
Otherwise, you'll go with the blended rate of an 80/20 loan on residential financing and probably end up around 8.5-9%.
8 1/2 to 9% is high[ Edited by woodsong on Date 04/29/2005 ]
That sounds really good. I bought a 6-unit and paid a bit more, went thru hell. I suspect the broker does mainly residential, but didn't want to lose the business.