All Forum Posts by: Horace Mann

Just to update everyone...first off thank you for all your responses, very helpful.  I settled on NBT bank for my 7 family purchase.  Some details, 25 year AM, 10 year fixed then converts to 5 year adjustable, 6.91%, and no pre payment penalty.  With no prepayment it is reassuring to know I can refi in a year or two if rates do drop.  If i wanted to do a 20 year AM they would have knocked off another 25 basis points.  They have been very professional and responsible and easy to work with.  Thanks to everyone for your help and good luck out there!

 Thanks Dan!  I reached out and waiting for a call back, I appreciate the lead!

I have been hearing that commercial apartment rates are in the 6.5% range from several podcasts recently. I am working on a 7 family and a 9 family deal, but all of my local lending contacts for commercial loans are quoting me between 7.5% and 8%. For DSCR qualification that 1%-1.5% makes a big difference. Do I just need to look harder or is what I am hearing mostly geared toward the 50+ unit deals? Thanks everyone!

I should also clarify that the $170/sf was not including land.

I would consider it, but I would prefer to do it on my own.  I just would like to confirm if that $170/sf was accurate for me as an investor or if that is the price of a GC to build it for himself.   Thanks for the reply, that may be an option for me to depending on the numbers.

I have an opportunity to purchase land currently zoned and approved for 5 duplexes (or 8 SF).  It is 3 miles from a university and I am thinking of building student rentals, (doing the 5 duplex option).  My commercial lender has funded a similar project in the same town.  4 bedrooms each side, with porches and garages at $170/SF.  Does this sound like the cost for an investor like me to build and hire a GC, or does it sound like a GC's cost who is building/GCing it himself without a markup added?  I want to have a general idea before meeting with contractors in case this is $50/SF under what I would have to pay to hire a GC, because if so it may knock me out of the deal.  Hopefully I am articulating my question clearly. Thanks for your thoughts on this!