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Are you planning to buy a mixed-use property in the San Francisco Bay Area? If you are, then you might be wondering how you can find the best financing options for your investment. In this blog post, we will discuss the tips shared in a YouTube video on sourcing bank financing for a mixed-use property in the SF Bay Area.
Understanding the Situation
The question comes from Shannon, who has identified a mixed-use property to purchase. The property has 16 residential units and four commercial spaces, and all but one unit are leased. The acquisition price is $3.135 million, and Shannon has about $850,000 coming from their 1031 exchange. Shannon has received one quote from a local bank that offered 6.75% on a five-year fixed amortized over 20 years. However, Shannon wants to find a lender for a 30-year amortization.
Tips for Sourcing Bank Financing
The expert, Beau Eckstein, recommends seeking help from a mortgage advisor. Mortgage advisors have lots of relationships with banks and credit unions, and they can explore all the options available to find the best deal possible. While there is a fee involved, the advisor can help find a much better deal and do it with a lot less headache.
Beau believes that his team could probably find Shannon a 30-year term amortization type of loan with a longer fixed rate option and without a prepayment penalty. They could also offer a better interest rate than what Shannon has been quoted by the local bank. Shannon could reach out to Beau's team at Emerge Lending Group to get more information and assistance.
Conclusion
If you are considering buying a mixed-use property in the San Francisco Bay Area or anywhere else, it is essential to explore all your financing options. Seeking help from a mortgage advisor can be beneficial in finding the best deal possible and avoiding headaches. By following these tips, you can get closer to securing the financing you need for your investment property.
Don't forget to ask questions and get advice from experts before making any decisions. Good luck with your investment!