Commercial Financing on an 8 unit apartment

[Nathan J.]

Hi all - another newbie question on an 8 unit.

I am running the numbers on an 8 unit (7 units occupied) that i am considering currently. What do you guys think of the commercial loan terms my lender is offering? She is offering a "5 year ARM with 10 year balloon- amortization to 25 years at 4.75%".

I don't have much to compare those terms to (its from a credit union in upstate NY). The property is advertised at 369k (would look to negotiate that) with an annual revenue of 66,660. I would put 25% down.

Where would folk suggest i look for alternate commercial loans. I would love to get a 25 or 30 fixed commercial, but i dont think they exist...

Thanks in advance

[Michael Blank]

@Nathan J. , it's important that you talk to at least 3 other banks or better yet, brokers. While the terms you got from your credit union look pretty good, you can probably get a longer term (like 10 years), and it's always better to have multiple options.