80% LTV?

[Moshe H.]

I'm trying to purchase a 6 unit that needs some work and the 25% down required by most lenders will  eat up too much of my cash.

Anyone know of a private lender who will go 80% on commercial who lends in NY?

[Joel Owens]

Check arbor funding in NY.

Just understand that if you go 80% ltv the interest is much higher in the 5's versus 4's. The lender prices in that extra 5% higher ltv as a high chance of losing value in the future.

What might be better is a 65 to 70% first with the lender and then get the seller to carry back a second note for the additional 10 to 15% to get to 80 or 85% CLTV. Get the seller to give an interest rate lower than the first position lender with a 30 year amortization if possible so the total blended interest rate goes down more. Try to get the seller held note to balloon in no less than 7 years.

You could look at a private investor for the second position note, the first position lender, or another lender but rate is usually in double digits and the seller held second is usually better rate and terms if you can get it.