What Are Realistic Loan Terms For Industrial Property?
I'm looking into buying multi unit industrial property.   

What are realistIc loan terms?

(I know this is a 'multi family forum but it was the most applicable I could find).

Having surfed the forums I see people saying 10% down and no recourse loans, to 25% down and 9% interest rate.  

I'm particularly interested in industrial, as a I see a growing shortage in my local markets and I don't want to have to deal with residential tenants.  

Personally I've got $2.1 million liquid. My income puts me into a 35%+ tax bracket... so taxes are a big hair cut and a loan structure that allows me to pay more interest up front would probably be beneficial (so I could deduct it).
[{"id": "hj9vk69", "text": "The correct answer here is \"it depends\". However given that there are decent leases in place that don't have imminent expiries, and those leases give a cash flow value at at least equal to the purchase price, and the NOI can debt service at 1.30 of the loan amount you should be able to get 75% LTC.\n\n&amp;#x200B;\n\nNo recourse at 90% and 9% interest is nonsense unless there are extra ordinary circumstances. Talk to a good commercial mortgage  broker.", "replies": [], "depth": 1}, {"id": "hja2hew", "text": "I\u2019d recommend finding a good commercial broker to work with.  Also try a smaller local 1-3 branch bank.  We closed recently on a 75% LTV., 20 yr amortization with 7 yr fixed rate at 3.85%.", "replies": [{"id": "hjdba0q", "text": "20 year amortization sucks :( is this a rickety ass property?", "replies": [], "depth": 2}], "depth": 1}, {"id": "hja39cp", "text": "This is much broader than MF. It\u2019s popular because well MF is popular but there are plenty of big boys in other assets. \n\n90, no recourse is silly. \n\nMy client is doing a 300k sq ft industrial right now financed at 80%, full PG. \n\nIndustrial is on fire now. Lenders love cash flowing products. You need to talk to an actual lender in your market", "replies": [], "depth": 1}, {"id": "hjakt5j", "text": "Happy to give any more info if you want it but will keep this brief.  \n\nI work as a commercial mortgage broker. All non-recourse lending is at a much lower LTV than 90%. Think 60-70% unless it is a bridge/hard money lender. Which still probably tops out at 80-85%. \n\nA rate of 9% is extremely expensive. If the property is well located, has stable tenants, and in good condition you should be considering something much less expensive and at a lower LTV. It\u2019s also important to separate industrial, flex, and warehouse properties. Many people throw them in the same category but they are not the same from a lender perspective. \n\nThere are a lot more factors that go into a loan. Number of leases, expiration dates, strength of tenants, building size, structure, etc, etc.\n\nWhat is the cost and cap rate of the building you are looking at?\n\nIt sounds like this is not your full-time profession which could turn off some lenders. However, there are options out there depending on the property location and metrics.", "replies": [], "depth": 1}, {"id": "hjc3f39", "text": "*\"What are realistIc loan terms?\"*\n\nThe ones that work for you.", "replies": [], "depth": 1}, {"id": "hjf4l7v", "text": "Depends. Got a 25 year amortization on 70% LTV 3.75 interest rate on a AAA tenant in a A office/shop space. \n\nSimilar numbers on an older warehouse space with 6 cap, slightly higher interest rate. \n\nForecasts are favouring industrial especially warehouse/distribution. \n\nDepends on your location and industry I\u2019m assuming. \nThrough traditional lender.", "replies": [], "depth": 1}]