Posted by Shaun on February 22, 2006 at 16:10:33:
It will depend on the property you pick also. Commercial Loans are a lot different than residential. If the property is cash flowing nicely, you have solid assets, solid credit, and a nice down payment of at least 20%…you should be fine. The last I checked, rates on commercial loans were still in the 6’s if not…early 7s. You should be able to find a 30 year amortization also.
Loan terms to expect - Posted by ken in sc
Posted by ken in sc on February 21, 2006 at 11:22:34:
Hopefully Ed or some other broker can respond to this question.
I have a group of 18 houses that I am negotiating to sell as a package deal to an ionvestor. If all goes as planned, I will sell and do a 1031, coming out of closing with approx. 700K cash and needing 900K to complete the 1031.
I am looking at purchasing a commercial office building or retail center as my replacement property, probably cost between 1.8 and 2.3 million.
I have been self employed for over 10 years, have excellent credit, and obviously have a decent downpayment via the 1031 funds.
What terms can I get for this kind of loan in todays market? Specifically, how long can I term it out, and how long can I lock in the rate. And at what rate? I know I can get a 5 year or maybe a 7 year call, 15 year loan, but I was hoping for 20-30 year amortization and a longer lock in on the rate.
I need this info to run numbers on my replacement properties I am looking at.
Thanks in advance.
Ken
Re: Loan terms to expect - Posted by wes
Posted by wes on February 21, 2006 at 14:32:52:
A 10 year fixed rate is available.
With the current yield inversion in the bond market(short term rates are higher than long term), the ten year fixed rate is very attractive.
30 year amortization is also available.
Currently in the bond market, a 2 year note is yielding 4.7% and a 10 year 4.56%…
In the past this inversion has almost always led to an economic downturn. Wonder if it will this time?
When you get the details nailed down, we would be happy to take a look at your deal and see what rates and terms we could offer.
Regards,