Looking for a multifamily loan

Looking for a loan Posted by: J. Jones Mar 15 2003, 12:27 PM


Multiple 4 plex (Residential) affordable houseing gated community
project in development.

– 32 Apartments minimum
– 1 Multi Purpose building
– Mintes away from South Lake Tahoe (Close to Heaven)
– Minutes away from Carson City Nevada.
– Minutes away from Hot Springs
– Great location.

“Affordable living with all the perks”

Information I need…

– Points you would charge.
– How long would the note be for?
– Balloon payment info.
– Rates
– Straight or Amortized Note?
– Graduated Mortgage options?
– Can you finance construction loans in Nevada?
– Can you fund the whole project or just in part?

Thanks in Advance…

Posted by: loanuniverse Mar 15 2003, 03:33 PMDear J. Jones:

I am sorry, but I am not on the business of making loans. Although, I work in a commercial bank that does this type of loan, I keep that separate from this website, which is more of a personal thing than a business. Nevertheless, I can give you some general information on the way these loans are structured.

1- If the project is in development then your financing will start with a construction loan and then transform into a regular income producing loan or will just gradually disappear if you are going to sell the apartments as condominiums.

2- Income producing loans are usually for 10 years with a repricing after the first five years. Similar structures are common, but do not expect a fixed rate for longer than 5 years. This is done to avoid interest rate risk.

3- Rates are combination of either the 5-year treasury bill rate or the prime rate and a premium. A 6% rate would be common in today’s market, but it can go lower depending on negotiation.

4- Amortization is usually based on a 20 or 25 year term with twenty years being the more common.

Good luck on your project and I hope to have helped.
Author: Commercial Loan Underwriter