First time poster looking for typical down payment percentages on a commercial loan. What’s your experience with this?

My husband and I just had our offer accepted on a multi-unit residential property. Very exciting! (Our other properties are single or two units.) This property is significantly more expensive than our others, a big step up for us, so we are bracing for the amount we will need for the down payment. We can easily swing 20-25%, but I’ve been reading it bay be up to 40% down! 

What have you all experienced with down payment percentages? (For reference, this loan will be about $700,000 all told.) 
[{"id": "eaom3vp", "text": "25% down usually at least on commercial loans. I have seen 20% before but only because the person had a lot of business and history with the bank. \n\nFixed it for the bot ", "replies": [{"id": "eaom4ah", "text": "Hey, baumbach19, just a quick heads-up:  \n**alot** is actually spelled **a lot**. You can remember it by **it is one lot, 'a lot'**.  \nHave a nice day!\n\n^^^^The ^^^^parent ^^^^commenter ^^^^can ^^^^reply ^^^^with ^^^^'delete' ^^^^to ^^^^delete ^^^^this ^^^^comment.", "replies": [{"id": "eaom4cq", "text": "Hey CommonMisspellingBot, just a quick heads up:  \nYour spelling hints are really shitty because they're all essentially \"remember the fucking spelling of the fucking word\".\n\nYou're useless.\n\nHave a nice day!\n\n[^Save ^your ^breath, ^I'm ^a ^bot.](https://www.reddit.com/user/BooCMB/comments/9vnzpd/faq/)", "replies": [{"id": "eaom4m4", "text": "Hey BooCMB, just a quick heads up:\nThe spelling hints really aren't as shitty as you think, the 'one lot' actually helped me learn and remember as a non-native english speaker.\n\nThey're not *completely* useless. Most of them are. Still, don't bully somebody for trying to help.\n\nAlso, remember that these spambots will continue until yours stops. Do the right thing, for the community. Yes I'm holding Reddit for hostage here.\n\nOh, and while I do agree with you little feedback loop -creating comment, and I do think some of the useless advide should be removed and should just show the correction, I still don't support flaming somebody over trying to help, shittily or not.\n\nNow we have a chain of at least 4 bots if you don't include AutoMod removing the last one in every sub! It continues!\n\nAlso also also also also\n\nHave a nice day!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eaopnlr", "text": "It depends on the bank and what kind of rate you want to pay. I would definitely suggest shopping around. I would plan on putting between 20-40% down. The more money you put down the cheaper the rate will be and the looser the terms will be. ", "replies": [], "depth": 1}, {"id": "eaopwhl", "text": "Not trying to come across the wrong way, but you should have an idea of prospective financing before you submit offers. ", "replies": [], "depth": 1}, {"id": "eaowro8", "text": "I am a commercial CRE Lender. I've done loans from $500,000 to $65MM. If you're looking at a multi-family property with a total cost of $1mm you can probably find 80% money (20% down). I  could probably loan you 75%, and definitely 70% assuming everything checks out. These percentages are based on a full personal guaranty from you and the other owners.\n\nWhen you get into non-recourse loans (no guaranty) we generally only do those with extremely experienced individuals or institutional investors. In those cases leverage is generally in the 60 to 70% range. In a way, banks make people 'pre pay' a guaranty if they want a non-recourse loan. ie I'll give  you a 60% loan no guaranty, or a 75% loan with guaranty. ", "replies": [{"id": "eaox3i3", "text": "I work in lending too, this is exactly right. OP feel free to PM me if you want a loan, we are a balance sheet lender and can swing you a deal in less than 2 weeks. ", "replies": [{"id": "eaox8d7", "text": "Lucky bastard. We don't move anywhere near that quickly. How big is your bank....ballpark?", "replies": [{"id": "eaoy1fe", "text": "Not a bank we are 100% private. Size just like you 1mm to 75mm with rates starting at 8% and LTV up to 80%. In terms of personnel 6 MDs, dozens of associate underwriters and originators, and then 3 analysts (me). We do bridge loans, mez, and some equity. ", "replies": [{"id": "eaoyjam", "text": "Interesting. I've thought the private side could be more interesting. Are you guys changing anything up these days about your risk profile?   Maybe being less aggressive on mezz because of cap rates starting to flatten and rise in some places etc?", "replies": [{"id": "eaozuou", "text": "Honestly good question im not 100% sure thats above my pay grade rn. I know recently we have been losing deals left and right to hard money to shops like blackstone. We are honestly just chasing as many deals as we can get. However even though we are located in NYC we never enter major markets, for example I was in the middle of nowhere wisconsin on monday doing DD on a warehouse for about 4mm.", "replies": [{"id": "eap0ha6", "text": "I cover a lot of smaller markets as well as primaries. I'm seeing more people from CA, NYC and other places sniffing around tertiary markets. That's typically a sign of a waning cycle. All of the best and easiest value has already been extracted (not 100% obviously) from primary and many secondary markets. In fact, about 18 months ago there were a number of secondaries that were seriously overheated.\n\n", "replies": [{"id": "eap1e2t", "text": "Yeah good point NYC is so saturated, for as long as I have been here we have only done mez in flushing and long island city as manhattan is taken by the big boys and there is a finite amount of space. What do you mean by 18 months ago are they not overheated anymore? ", "replies": [{"id": "eap1v0m", "text": "I underwrote two deals in LIC before going to production, they worked out well but that was probably 4 years ago. \n\nThose overheated secondary markets are still warm but not accelerating in the hot direction ", "replies": [{"id": "eap2dfe", "text": "Ah ok, with amazon heading over there im excited to see where it goes. I think estimates have it at 17 billion for total economic boost in the area. ", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}, {"id": "eap3s83", "text": "I'm a broker and a sponsor..would like to connect a learn more about your platform.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "eap1bsk", "text": "As a recent grad, if I told you my major is finance and I have worked in commercial real estate for 1.5 years now, would this help me get financing for my first deal?", "replies": [{"id": "eap1opu", "text": "Sorta but not really. It means you have a better chance of not fucking up the deal on the front end but won't necessarily make lenders love you more.\n\nAs a lender I want to see experience, equity, and a realistic business plan that makes sense. You probably don't have a balance sheet that makes your guaranty worth much. I can guarantee a $10Bn loan but it doesn't mean shit.... you can take my house, savings, everything, and it doesn't mean anything b/c the lender is fucked.\n\nWith a lack of a balance sheet and true experience owning and operating CRE I want to see a solid business plan, I want to see you using 3rd party groups to supplement your lack of experience.\n\nBut take this with a grain of salt. I have made a habit of not making shitty loans. There are a lot of lenders out there who need the business and will take flyers on people. You'll just have to shop for a lender. \n\nAlso, now is the time to take the risk. 10+ years from now when you have a wife, kids, mortgage, and savings worth losing, it's a lot harder to justify the risk and put together deals that are strong enough to make the risk reward profile work for where you are in life.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eaox2wi", "text": "25% is pretty standard. A couple regional banks i've talked to would do 15%. Really depends on the DSCR of the building, your assets, and your global cashflow from other units. Also, are you willing to pledge another building? These are all factors that will be considered on how little/much you will need for a DP", "replies": [], "depth": 1}, {"id": "eap14bf", "text": "Bringing deposits to the bank will go a long way. CMBS might be a little wary of a first time borrower. Not sure what agency lenders want in terms of experience. ", "replies": [{"id": "eapi8o8", "text": "$700,000 is too small for cmbs and I think Fannie suspended their small loan program too. ", "replies": [{"id": "eaqcygy", "text": "It\u2019s not unheard of but I\u2019d agree that first time borrower + sub 1mm loan is low probability even for one of the small lenders.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]