Commercial Multi Family Purchase

[Greg Snell]

I have come across a 13 unit bundle of 3 properties that I would like to purchase. I don't know much about commercial loans/buying process and how it differs from conventional, hoping someone could help me out. Are the loans shorter , i.e. I'm not going to get a 30 year loan, what is the standard loan term? What are the banks looking for when it comes to approval, my income/debt ratios? I would need to partner with someone to afford the down payment, I know this is usually done with an LLC, are commercial loans given to LLC's? I have been denied by several banks trying to purchase a 2-4 unit with an LLC. Any advice is greatly appreciated.

[Greg Dickerson]

Originally posted by @Greg Snell:

I have come across a 13 unit bundle of 3 properties that I would like to purchase. I don't know much about commercial loans/buying process and how it differs from conventional, hoping someone could help me out. Are the loans shorter , i.e. I'm not going to get a 30 year loan, what is the standard loan term? What are the banks looking for when it comes to approval, my income/debt ratios? I would need to partner with someone to afford the down payment, I know this is usually done with an LLC, are commercial loans given to LLC's? I have been denied by several banks trying to purchase a 2-4 unit with an LLC. Any advice is greatly appreciated.

Every bank is different. They have different requirements, rates and terms. Small commercial loans like this will be based on your financials, credit history and experience as well as the property itself. You will need 29-30% for down payment and 6-12 months reserves in the bank as well. Best thing is to put together a complete detailed package and shop every bank and credit union in your area. You can also talk to commercial loan brokers as well.