Financing Industrial Property Purchase

[Eric Thomson]

I have been managing a set of industrial properties for a family member for several years and they are now wishing to sell the property. I am trying to put together financing so that I can purchase this property for myself and replace my income, but I need to be able to do so at 10% down. The property is 100% occupied and at 10% down would still have positive cashflow depending on terms and requirements from the lender (and of course if the payments would be too high - high interest, short payment schedule, etc - then I wouldn't consider buying it).

I thought I would be able to find more on these forums but I cannot. Maybe there is not much difference between industrial and commercial financing. Is it possible to find a lender that will take on a 90% LTV or an 80/10? Seller financing MAY be an option but it may get a little tricky with family. I would definitely like to explore other financing options first.

How are the terms typically on these types of loans? Is it a 20-25 yr schedule with a 5 year term? How do interest rates compare to financing sfh's?

[Derrick Moore]

For Industrial
Industrial so 75% LTV--And CLTV - 85%- so here you need a first and second
Terms: 5,7, 10 & 20 years
Amortization - 25 years
Minimum occupancy is 85%

Frank Gallinelli IS Correct DSCR is 1.25

But everyone is right on target with their points. Oh this is commercial so rates are going to higher than residential