What's a good interest rate for a commercial loan now? - PeachParts Mercedes-Benz Forum

t walgamuth · #1 11-21-2008, 08:46 PM

Anybody have a recent experience at what constitutes a good rate now? This is for my 30,000 plus square foot mixed use office/ residential building.

I am negotiating a new mortgage with my bank now and I want to see if what they offered me is market rate?

John Doe · #2 11-21-2008, 08:58 PM

There is a guy that knows this industry here that if you haven't offended may offer to help you out, but there are a lot of variables to consider when asking about a 'good rate' and you haven't given many details. That said, I recently was involved in a transaction renegotiating a $2.4M loan that was six years into a 10 year loan down from 7.2 to 5.4(something). BUT, there was a commitment from the business (a charter school) to run about $1.2M a year through the bank that renegotiated the loan. As you can imagine, it changed the cash flow considerably. The term blackmail came to mind, but I checked it out with the guy here who I haven't offended, and he said it is legal, as well as ethical.

t walgamuth · #3 11-22-2008, 08:00 AM

If you are thinking of Howie, we have a mostly peaceful relationship, about like you and I do.

I would like to get a rate around 5.5. My loan is a bit smaller than theirs.

Using the terms legal and ethical in the same sentence as banker is kindof comical. Bankers usually pretend to be both but often are greedy and dishonest just like plenty of folks in other walks of life.

Medmech · #4 11-22-2008, 11:16 AM

Mixed use, depending on the bank,ltv tenants,lease history,cash backed assets, cash on hand,deposit history,declining market,fixed,variable,balloon,line of credit yada yada 5.5% is a gift. If you don't like the ethics of bankers you can simply not borrow, the ethics of bankers is largely regulated and enforced with a vengeance when was the last time a crappy architect was prosecuted? Don't give me the bankers ethics BS.

John Doe · #5 11-22-2008, 11:49 AM

Quote:

Originally Posted by Howitzer

If you don't like the ethics of bankers you can simply not borrow, the ethics of bankers is largely regulated and enforced with a vengeance when was the last time a crappy architect was prosecuted? Don't give me the bankers ethics BS.

I know that wasn't directed at me, but I was just a little surprised about that situation I discussed with you--they were so blatant about it, I thought they were either mob, desperate or it was perfectly legal. Turns out it was perfectly legal and they are our depository now

('course we got to 5.4 from 5.6 by threatening to have my bil's other partner move his mother's accounts--two can play once you know the rules

)

Medmech · #6 11-22-2008, 12:06 PM

Quote:

Originally Posted by John Doe

I know that wasn't directed at me, but I was just a little surprised about that situation I discussed with you--they were so blatant about it, I thought they were either mob, desperate or it was perfectly legal. Turns out it was perfectly legal and they are our depository now

('course we got to 5.4 from 5.6 by threatening to have my bil's other partner move his mother's accounts--two can play once you know the rules

)

There is a method to the madness, holding the deposit accounts is a venue for close monitoring of accounts for cash flow, I have heard banks going asking for monthly P&L's to make sure that all of the money is going to the bank...the second reason is the accounts help with reserve requirements last but not least greed.

Quote:

two can play once you know the rules

Exactly

t walgamuth · #7 11-22-2008, 03:29 PM

Quote:

Originally Posted by Howitzer

Mixed use, depending on the bank,ltv tenants,lease history,cash backed assets, cash on hand,deposit history,declining market,fixed,variable,balloon,line of credit yada yada 5.5% is a gift. If you don't like the ethics of bankers you can simply not borrow, the ethics of bankers is largely regulated and enforced with a vengeance when was the last time a crappy architect was prosecuted? Don't give me the bankers ethics BS.

I did not think you thought of yourself as a banker. I really know nothing of your banking or business ethics. From what I see here I would expect you to be more honorable than the bankers that I am thinking of. My ethical comment was most certainly not directed toward you.

If you would like comments about my distaste for the way that I have been treated I will be happy to pm you with more details.

Thanks for the comments about the rate.

What were you thinking about an Architect being prosecuted for?

sixto · #8 11-22-2008, 03:38 PM

The Costco magazine had an article about the increasing popularity of peer-to-peer lending.

Here's some info on it. Might not be what you're looking for but the concept is interesting givent he tight credit situation -

http://www.informationweek.com/news/internet/ebusiness/showArticle.jhtml?articleID=187203312

Sixto
87 300D

Honus · #9 11-22-2008, 03:58 PM

6.5% if the ratios and guarantors are strong.

7.25% if the ratios and guarantors are OK, but not real strong.

t walgamuth · #10 11-22-2008, 04:09 PM

I've been offered 6.5 and would like to do better if possible.

Thanks very much for your thoughts!

t walgamuth · #11 11-28-2008, 12:03 AM

I am going to sign a new mortgage agreement on Monday for 6% one year adjustable based on 3 over the one year t bill amortized over 30 years with a floor of 5.5%. Thats aproximately what I originally had before things hit the wall a year and a half ago. So if my taxes don't go up too much I can probably squeak by for the foreseeable future.

Whatever forseeable means today!