Over the last week I have been in contact with a loan officer from JP Morgan in the multi-family department, and a broker. The loan officer gave me numbers for interest rates, LTV, loan terms, and other requirements. He stated that as new or first-time investors it would be highly likely that personal guarantees would be required along with a pledge of liquid assets such as stocks, bonds, or a trust fund. Due to low interest rates, they are pushing a variable 1.5% loan at the moment. Traditional lending would be about 5-7% for 15-25 years. Without personal guarantees or pledges, they would require up to a 45% down. Quite the entry barrier!
With the brokers help, I investigated several other properties in the University Park area as well as looked at some comparable properties. Unfortunately, unless you are a serious buyer, many owners will not give out many interesting and pertinent details essential to evaluating comparable properties.
No comments:
Post a Comment