Investor Real Estate Loans

Our lenders like investor real estate. Some of the aggressive rates and terms they offer are very difficult to compete with. For example: we are currently working on a $6 million dollar loan for an apartment complex. $1.5 million of the loan is cash out to the owners of the property. The remaining balance is a refinance of the existing debt. The loan to value on the cash out is 75%. This project was offered a 5.85% interest rate which is fixed for 10 years. The loan is also amortized over a 25 year period and is non-recourse.

These lenders are not just confined to apartments. They like industrial, retail, office, medical office, warehouse, and even some projects that are under construction. Typically the properties need to be stabilized with a proven cash flow. For loans that do not have a proven cash flow, recourse is typically required.

In this market there are many good deals to be made and had. In some cases our lenders will offer an 80% LTV on the purchase of new investor properties. Now is a great time to be in the market cherry picking the investor properties you have always wanted. Don’t let financing be the hurdle that keeps you from realizing your 2011 goals.

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