Commercial Loan Details. Good?

[Sean S.]

Hi,

I have been going back and forth with a variety of banks and credit unions about possible loans. I want to operate out of my LLC and since I am brand new to property flipping it has been difficult. So far I have had the most success with lenders offering commercial loans. The best loan terms I have encountered is 80% LTV for the purchase, 100% rehab, 7% interest, 12 months interest only and then the balloon payment, they charge 1 point. Do you guys think these are reasonable loan terms or should I continue to search for different lenders?

I found one other lender that offers the same terms except they offer a 6.25% interest rate. The other lender seems significantly more versed in flipping so I am leaning towards that deal.