Financing in atlanta


I have a deal with cap rate around 8.5% with very good tenants in atlanta. I am willing to put 20% down and requires the financing of about 250 to 300 thousand dollars. The best financing deal I have got so far is

3 year balloon (20 year table)

Points: 1/2
Rate: prime(6.25) + 1 = 7.25%

5 year balloon (20 year table)

Points: 1/2
Rate: prime(6.25) + 1.5 = 7.75%

I some how think that I can do lot beter than this with 20% down. I would rather have 20 year fixed traditional mortgage if I can find the better deal.

If let me know what you guys think.

Is it a commericail property (6 and over)? what is your credit rating like? and how soon do you need to close?

If it’s commercial, this may not be bad, but if it’s residential (4 units or less) you can do better.

It is commercial, Office condo. We are 2 partners in LLC and our credit score is very good.

i know that I am replying late…but I looked at a few of my sources and the rates that you quoted look to be right on par.

Good Luck!