Posted by Dave T on December 19, 1998 at 23:13:31:
thanks, I will follow up
Commercial Financing - Posted by Dave T
Posted by Dave T on December 18, 1998 at 22:48:50:
I am looking at a 40-unit apartment complex with a $140,000 NOI. If I can get $1.25MM on a 30-yr fixed loan at 7.5% or better, then my debt coverage ratio will be 1.3 or better.
The local bank is telling me that they will only make commercial loans on a 7.75%, 15 year amortization and that they have a 5-year balloon. Using their loan numbers, and keeping a debt coverage ratio of 1.3, the NOI will only support a loan of $890K.
Are there commercial lenders who will make long term (25-30 yr)loans for an investment similar to this?
Ask Ed Garcia - Posted by David Alexander
Posted by David Alexander on December 19, 1998 at 01:07:28:
He’s the commercial loan expert around here.
Probably need to post on the other forum though.