Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

121
Posts
8
Votes
Todd Moriarty
  • Investor
  • Macomb, MI
8
Votes |
121
Posts

How many basis points to add to 10 yr treasury?

Todd Moriarty
  • Investor
  • Macomb, MI
Posted

My goal is to quickly valuate apartment buildings with current accurate data. (i.e. interest rates, insurance rates, future taxes, future expenses, etc.)

I'm trying to determine what the commercial loan interest rate would be for a loan for an apartment building.  Instead of calling my bank every time I want to check the rate (sometimes they don't call me back), I've been told to follow the 10 yr treasury note and add the current "basis points" to it.

It's easy to find the 10 yr treasury note rate but how does one go about determining the basis points amount to add to this? Is there a crystal ball, the magic 8-ball, a secret website?

Back in April a guy on BP told me 200 basis points plus the 10 yr note = 4.25%.  But my bank guy told me 5-5.25%. Where's this discrepancy coming from?  A few days ago I was told it's 225 basis points.

Most Popular Reply

Account Closed
  • Lender
  • Dallas, TX
128
Votes |
283
Posts
Account Closed
  • Lender
  • Dallas, TX
Replied

Todd, you need to compare apples to apples, every lender will have different spreads. What you will hear most often applies to institutional debt  and Agency lending. Banks will almost always be above those and then you credit and property size will impact even more.  Comparing spreads is best for deals over $2M and non recourse. 

Loading replies...