Commercial Financing – Your First Deal
So, you've searched like crazy to find a deal. You were bold enough to submit your LOI. Now it's accepted and you've got to figure out your capital stack. Financing multifamily properties (over 5 units) is a little different from a single family house. Typically the interest rate is higher, the amortization period is shorter, and there is usually a 'term', this means your loan is due in full (balloon payment). For smaller loan amounts (under $1M) local banks and credit unions are a good option. They like to support their community and these portfolio loans are a great revenue source for them. But, if you're an out of state investor, how do you get them to approve you? Relationships Matter Leverage your local relationships! You've already got a Property…