What kind of rates are out there now for commercial (specifically multi-family) income producing properties?

I've got $55k in cash I'm looking to use as a downpayment on an apartment building (not in D.C., priced way too high) and was interested to know what rates I could expect to get with a FICO of 700+, 10% seller financing and 10% cash down payment. In my models I have used a 7% - 8% rate for my projections.: In Buying Property - Asked by Jack R. - Oct 7, 2008

Answer(s)

Karen M.

Owner/Investor

Fairfax, VA

I just checked around on that very same issue (ableit with 20% down), and got the same answer twice. 8.75% interest 30 years term, and 5 years fixed interest with no prepay. Credit rating in high 700s.
Good luck. I'd be interested to hear how you end up, and where you buy.

Oct 7, 2008

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Justin W.

Corporate Investor

Tampa, FL

If you have the time, a HUD 223F is your best option, but it takes quite some time and your seller must be open to it.

Oct 8, 2008

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Mike B.

Broker/Agent

Napa, CA

Premium Member

We are seeing rates as low as high 6%. You can read my blog I have a recent posting on available rates. Try contacting KC Capital.

Web Reference: http://www.MikeBolen.com

Oct 8, 2008

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Joe V.

Owner/Investor

Plymouth, MI

6.5% - 8.25%. 100% financing/100% LTV at www.commercialfinaneconsultants.com.

Web Reference: http://www.thePowerofRealEstateNow.com

Nov 12, 2008

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Bjorn R.

Developer

Bonita Springs, FL

Premium Member

We were able to find 6.3% with 30% down on a $5M income producing property in southern Florida. The strong cash flow and 30% down helped. Generally I am seeing high 6's.

Nov 13, 2008

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