Mc Gregor, TX · Member since 2018 · 41 posts · 35 votes
We are looking for a loan for a small 6 unit apartment building. We are in Texas, it is in KCMO. One lender is 8%, one is 7.56% but a 30 year and one is mid to high 6%. Others said no for various reasons that we can't change, like where we live. The loan will be about $170ish and I realize that is part of the issue. Any suggestions? Thanks!
Commercial Mortgage Broker · San Diego, CA · Member since 2009 · 70 posts · 69 votes
7y
Have you spoken with banks and credit unions near the property?
What is the expected loan to value ratio (LTV) and debt service coverage ratio (DSC/DSCR)?
What fees are you being quoted?
What fixed rate period are these rates for?
What kind of prepayment premium/penalty is being quoted?
In general, commercial loans less than $1 million are expensive because it takes about the same amount of work to do a $1 million loan as a $100k loan and the lender has to make up for the fixed costs somewhere.
Investor/Agent · Kansas City, MO · Member since 2017 · 291 posts · 308 votes
7y
@Jennie W. we purchased a six unit building similar to this just under two years ago. We have a community bank we work with that has done most of our long term hold deals. It's a 20 year term at 5% but our cash flow is very strong and it's not in a bad area. I do not know if they lend to out of state investors, but worth a shot. PM me if you want their info.