Commercial Financing - Posted by Dave T


#1

Posted by Dave T on December 19, 1998 at 23:13:31:

thanks, I will follow up


#2

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?


#3

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.

David Alexander


#4

Or Call Him Monday morning… - Posted by raelynn mitchell

Posted by raelynn mitchell on December 19, 1998 at 10:02:21:

at 909-944-0199 (Southern CA - Pacific Standard Time). He’s President of American Heritage Financial (a mortgage brokerage) as well.