Commercial Lenders and Classic Terms

[Steven Blase]

Here is a question for the group that has probably been discussed a couple of times. For the newbies like myself, who do you use for commercial financing? Are there any investor friendly institutions that are willing to finance deals for a new investor with no experience? And, what would a classic loan look like in terms of interest rates, percentage down, points, years, etc. for someone in this fledgling stage of their journey?

[Mitch Hartford]

The bank doesn’t care where the 20% down payment comes from, as long as their only putting in 80%. Ask your seller to hold a note for 15%. It’s basically a second mortgage.