Newbie: Researching Lenders including from China—why is this so different than a residential loan?
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[{"id": "g76ejvh", "text": "There is little relationship between commercial loan rates and mortgage loans rates.\n\nMaybe you can do better than 5.1%? More important are the terms and IF the bank can actually get the deal done. Deals falling through due to underwriting in commercial is common. Just because a banker tells you the bank can do it doesn\u2019t necessarily mean the loan will get approved, or if approved, at the initial terms discussed. Most commercial is going to be 5-20,5-25 for an office building, but that can vary wildly. This means the loan is fixed for 5 years and payments are amortized over 20 or 25 years, with the loan due in full at year 5. \n\nAs this is your first building:\n\n1) what do you know about office in this market? What is the vacancy? What is the local market doing with work from home?\n2) do you have a real estate holding entity established? - LLC likely\n3) do you have your cpa in alignment for this purchase now?\n4) are you investing solo or with a partner? Better have an attorney draft your operating agreement if you\u2019re going llc now\n5) tenant lease. What is the structure of the current lease? Is the building occupied by a single tenant? If so, what amount do you have budgeted for TIs if you have to split the building and rent to smaller tenants.\n6) personal financial statements. If you haven\u2019t already put this together start now. There are template out there, but a bank may want the information in their format.\n7) don\u2019t bank with a Chinese bank, ever. Unless you support the horrific crimes the state is committing? I know our supply chains rely on their production, but don\u2019t get in bed with them more than you have to.\n8) do you have any management experience of office? If not, are you going to hire a management company? If so, is that accounted for in your proforma analysis of the T12 financials?", "replies": [], "depth": 1}, {"id": "g7862i2", "text": "Post removed due to violating post requirements", "replies": [], "depth": 1}]