Current Commerical + Secondary Mortgage Lending

[Bryan Springhetti]

Hey Y'all!

I was just checking in with eveyone around the Louisville metro area (or anywhere for that matter) as to what they are seeing with current lending practices as it pertains to commercial + secondary mortgages.  

My business partner and I have done the BRRRR (enough Rs? I never remember) strategy successfully for the last few years but running into some roadblocks currently with financing. Just last year we were able to put down 15% for a commercial loan with a 10 year ARM but that has completely dried up. Five different banks in the area said they were all looking for 20-25% minimum. In addition, we haven't gotten great feedback from banks (even ones we have a realtionship with) about the length of time/seasoning they require to refinance. In the past, 6 months was no problem but doesn't seem to be the case currently.

We had the opportunity to snag a pretty good investment property but were scared off by the financial climate/bank lening uncertainty and in retrospect, have some regrets.  Regardless, I wanted to see what much smarter people than myself have been seeing/hearing from their lending partners.

Appreciate the responses and stay safe!