|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.
– 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.