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June 8, 2009
Commercial Mortgage
I'm interested in buying a small (4-6 unit) multi family building and was looking at commercial mortgages as i will be keeping this in an llc for investment. Are the only 30 year loans really in the 8% range? Does anyone know of a good company to work with or have recommendations?
Thanks.
Comments
Commercial loans are tricky and work differently than straight up conforming personal home loans.
Generally the 5+ units you can only get a 25 year mortgage at 9xs the rent roll, usually a point or 2 higher than residential.
With the 4 family talk to a mortgage broker. I went through a standard mortgage broker and got in the 5% neighborhood for my 4. At one point I thought about doing it through my LLC and they said that would bump the rate almost 2 points (this was Jan/Feb 09). But they also said I could probably buy it with a personal loan, then transfer it to the LLC and save the points.
8% seems within the realm of possibility...
Posted by: christopher at June 8, 2009 2:20 PM
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