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