All Forum Posts by: Darryl Dahlen

Agreed. I believe that by BP expanding the umbrella to officially include CRE is going to make a big difference.

These are the options for longer terms with fixed rates: 5/5, 10/10, 15/15, 25 due in 10, and 30 due in 5, and 30 due in 3

I don't have the most current rates on the longer terms, and they do vary somewhat from state to state, but the last time I had someone ask for a quote on a 15/15 the rates was around 8-9%.

I should note, that the higher your credit score the lower the rate. It won't vary all that much, but it helps.

And yes, these loans are full-recourse. Your favorite, I know.

I can only speak to what the lender I use for small commercial deals can offer, but they are actively lending and are a reputable bank.

LTV: 70% for non-occupied properties. 75% for owner-occupied.
Credit score: minimum 700
DSCR:1.2
Loan amount: up to 500K

Rates are in the 5s for a 5/30 and 4s for a 3/30. Longer terms are available, but the rates are higher.

Lender likes to see two years of personal and business tax returns, rent roll, proof of money to close, articles of incorporation, P&L, etc.

The lender is running a special until the end of June where the only lender fees are title, escrow, and a small underwriting fee (which is applied to your first payment if the loan closes). This lender does not require an appraisal. That may seem odd, but they do their own internal valuation in lieu of an appraisal. Still, omitting the appraisal saves the borrower a lot of money which makes this a relatively cheap loan to obtain.

The loan does not have to close in June to capitalize on the special. I just have to submit the application before the end of June. Otherwise, there is a lender origination fee of 1%.

Small balance commercial lenders tend to cover the spectrum of what's out there. Meaning, small, med, and large banks as well as credit unions.

I don't usually approach the smaller banks as it's too much trouble to find a lender for that small a loan. Not to say there aren't some great ones out there, but where the commercial lending market is still pretty fragile, I prefer to stick with known entities if I can help it.

When it comes to SBC deals, I prefer to work with a larger bank. Their guidelines are the same in Texas as they are in Maine which makes it easy(er) to know what to expect.

Still, if there is a space within commercial lending that has a lot of variety, it's this one. That's why I'm curious as to what other people are experiencing.

In an effort to get this new forum started, I thought I'd start with a post that should be easy to discuss given some of you residential folks might have a commercial multi-family property or two or be looking for one.

Personally, I consider small balance commercial deals to be those that are under $500k, but every lender is different. I've seen some lenders offer loans up to $750K under their SBC programs, but those amounts seem to be fairly rare, and from what I saw, the rates were horrible (7-9%)

However, as of late, it appears lenders are becoming more aggressive when it comes to SBC lending. As such, I'd like to get your thoughts about what you are seeing with regards to lender activity. I'd also like to get a sense for what kind of term/rates/LTV's are currently being offered.

While I love the lender I use because of their rates, and the fact they don't require an appraisal, I'm always on the hunt for other lenders.

I think Bryan pretty much covered everything that should be included in a well-rounded CRE forum.

If there is a downside by having a commercial forum it's the fact the wolves will come out in droves to try and pitch their wares, offer 100% financing, sell a commercial tape with 30 brokers in the chain etc.

I think a commercial forum should require verification of the poster and a higher post count to post before they can post. That should help to keep the charlatans at bay.

If you do agree to close these in batches, could you simply turn around and wholesale a batch off?

That might give you a means to cherry pick which properties you want to keep and put the undesirables into a batch that you could sell off. I don't know if that's possible, or even realistic, but if it is it could be a way to recoup some of your down payment.

I know with the people I've invited the primary reason why they're not active is simply due to the lack or relevant topics for them to participate in. That, or the topics come up so infrequently that they miss them because they stopped checking BP.

Since I'm in the commercial arena, most of the people I would invite are as well. In the case of the attorney I asked to visit (this is just one example), he didn't see all that much for him to contribute to so faded away.

I think in order for BP to really flourish it needs to encourage a broader spectrum of discussions. Don't get me wrong, it's great as it is, but if you really look at it, what are 80-90% of the topics related to? Residential real estate.

For those who don't play in the residential space all that much, it's hard to get them to stay/get active in the posts.

The challenge is how to get people who participate in other sectors of real estate to become active.

I'd like to see the room start as a free for all and see where it goes.

It would be nice to have a private room where we could let down our guard down a little more and discuss topics that might not otherwise be brought up. Not saying they have to be topics of an R-rated variety, but I know I hold back a little about what I post and topics I'd like to start simply because this is a real estate forum and the content is searchable.

Personally, I wouldn't want someone finding a topic I started discussing what cigars people like or if single malt scotches are better than a blended one and them forming an opinion of me based of that thread.

My job is hard enough without someone thinking I'm a lush because I like a drink every now and then, lol.

I like this idea.

I know I sometimes have a question, request from a buyer for a property, or even have the occasional property for sale that I can't/don't want post for all to see.

Having a private room for PRO members where the content won't show up in internet searches could lead to business opportunities that might otherwise not get posted.