Financing in 90266>Question Details

Kaye Thomas, Real Estate Pro in Manhattan Beach, CA

Buying Income Property

Asked by Kaye Thomas, Manhattan Beach, CA Sat May 12, 2007

I have a client looking to purchase a 5 unit building in Manhattan Beach CA.. what is the loan to value ratios for these income properties.

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Great question, Kaye. 5 unit loans are commercial loans and the loan amount is determined by the debt service coverage ratio. THAT determines the loan to value. I have a description of it in the article cited below.
2 votes Thank Flag Link Sat May 12, 2007
In manhattan beach, that would most likely be a 50-60% loan to value for A paper rates, Hard money loans will go to 65-70% loan to value and allow for subordinate financing (seller carry) up to 100%
2 votes Thank Flag Link Sat May 12, 2007
Typically investment properties require 50%LTV, but many lenders will work with a well qualified buyer up to 80%LTV. Hope this helps.
Web Reference: http://www.flippingpad.com
1 vote Thank Flag Link Sat May 12, 2007
Brian.. You article was very helpful.. thank you for the information..
0 votes Thank Flag Link Wed May 23, 2007
Kaye Thomas, Real Estate Pro in Manhattan Beach, CA
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