First Commercial

[Bottlejack]

I am looking to purchase an 8 plex. I am told that I can get financing for a worst case of 7%. This seems high to me. I am in Ontario. I plan on putting whatever is needed down 20-25%. Less is what I would like but I would put more down if I need to, to get a better rate. Is this the going rate for a commercial?

Any suggestions where i could go for a better rate?

thanks
eric

 

[Thomas Beyer]

QUOTE (Bottlejack @ Apr 21 2009, 05:46 PM) I am looking to purchase an 8 plex. I am told that I can get financing for a worst case of 7%. This seems high to me. I am in Ontario. I plan on putting whatever is needed down 20-25%. Less is what I would like but I would put more down if I need to, to get a better rate. Is this the going rate for a commercial?

Any suggestions where i could go for a better rate?

thanks
eric
try a CMHC insured mortgage IF in decent condition and if rents are close to market .. sub 4% !

is this in a small town ? then 7% is the rack rate !

try a local credit union .. maybe a bit lower !

Feel free to send me some numbers like rent roll, expenses and I can give you an idea of loan-to-value .. as you MAY need more than 25% down !