What’s the Maximum Loan to Collateral are you able to get?

[Darr]

Primarily as a result of compressing cap rates, cash on cash returns are under pressure and mortgage underwriting is getting tighter.



What`s the Maximum Loan to Collateral are you able to get to purchase an Income Property?

Specifically, what`s the maximum loan were you able to get as a percentage of ALL assets pledged as collateral (not just the target purchase)?



Using the following formula: Maximum Loan/Total Pledged Collateral= Leverage Percentage

For example: 500k Loan/ 1000k Total Pledged Collateral= 0.50 or 50% leverage



Alternatively, how much down payment (%) are you being asked to provide?



Share your experiences.

 

[Thomas Beyer]

20% down in small towns is still possible, but in bigger cities 25-30% down is more normal these days.

 

[Darr]

Hi Thomas- Thanks but I'm hoping people will contribute recent live examples.