Posted by Jim on September 18, 2009 at 16:03:52:
Thanks for your response. It is exactly what I was looking for. The information isn’t the best one could hope for, but it is reassuring that it still works in the right place. Thanks
Posted by Jim on September 18, 2009 at 16:03:52:
Thanks for your response. It is exactly what I was looking for. The information isn’t the best one could hope for, but it is reassuring that it still works in the right place. Thanks
NNN Financing - Posted by Jim
Posted by Jim on August 19, 2009 at 20:43:47:
Not sure if this is the right forum for this question, but here goes:
Can anyone tell me rules of thumb for finance rates for NNN (CTL) lease properties. For example, how many basis points over the 10y Treasury would the rate be for a property with 75%-95% LTV and with a term of 10-30 years amortized over thirty years. (I know, this question begs multiple answers; that’s why I asked it this way.)
I do not have any properties picked out yet but need the information to analyze prospective purchases.
Thanks.
Re: NNN Financing - Posted by PeterN
Posted by PeterN on September 18, 2009 at 03:09:27:
I was working on a Dollar General store with a brand new ten year lease and most lenders were in the 65 to 70% range. One local bank was willing to go up to 75% LTV. The rate was in the mid to high sixes and the term was 20-25 years.
It is extremely difficult to go out of your area and expect better LTVs at this time. In fact, most community banks are only lending with area residents and local projects. I have tried and tried with several local, regional and national banks for a commercial short sale opportunity out of state.
I have great credit, money in the bank, etc. I also have a commercial property that I am trying to sell, but the banker is too busy with problem loans to worry about a performing loan, as the buyer wants to finance with the same local bank since they already know the property. At least, I am in a position where I do not have to sell.
Good luck to you in your search. I would call at least ten lenders to find out the current landscape in your area. Commercial lending will not improve over at least the next 6 months, probably longer.
Re: NNN Financing - Posted by christopher w
Posted by christopher w on August 22, 2009 at 12:20:49:
I am working on a couple of commercial deals right now and I can tell you that I am not seeing ANYTHING over 80% right now and you better be a STRONG borrower to even get to 80%. 95% is a pipe dream.
Re: NNN Financing - Posted by James Harris
Posted by James Harris on August 22, 2009 at 24:07:15:
It’s not that the mutiple answers; as it is the question you’re asking may not be what any of us here can answer. Although many mortgage brokers may try to answer, and you will get many different answers. I think it’s safe to say that the question is best suit for someone that is a lender or broker.