Funding for 10 single family homes using commercial loans

Funding for 10 single family homes using commercial loans

Real Estate Agent · Rapid City, SD · Member since 2019 · 43 posts · 11 votes

I will have 10 single family properties all in 10 individual commercial loans. Collectively I have over 20% down on a 5 year term at 5%. I’m concerned about all the refinancing happening near year 5. What products out there would give me a similar or better interest rate over a longer period of time?

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  • Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    6y

    Scott, you can try and request a 10 year term. I always start with 10 year because usually the 10 year swap rate is lower than the 5 year anyway.

    You can refi each individually on DCR rental loans with a 30year fixed term and that solves your problem.

  • Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
    6y

    @Scott Henrikson

    Start looking now, get your financial feelers out there. Hopefully lending will be better in 6-8 months than it is now.

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