16unit Apartment Syndication - South Texas

[Mauricio Ramos]

Hello BP Family,

We are excited as we are getting closer to our next acquisition: a 16 unit apartment complex in the Rio Grande Valley. We will be bringing investors (friends & family) for the downpayment and closing costs and get a loan on the balance. CoC about 10% avg, business plan is to hold it for 4-5 years and should be able to double everybody's money by the end of the life of the project.

My question to the group is about the interest rate. PP= $570,000, LTV 75, 5 yr fixed, 30 yr am, recourse. The rate we are being quoted is 6.875%. What are the rates/terms you are seeing for loans under $1M?

Thanks for your input.

Mauricio Ramos