Was quoted 6.25% at 80% LTV on a self storage property. 5 year fixed, last 10 are floating. 25-year amortizaron. Prepayment penalty for first 5 years on sliding scale. Recourse.

Is this good?

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Solid deal, looking for a partner to provide additional $$?

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Depends on your DSCR

Stabilized it will be over 1.5x. In place is 0.9x because the contractor garage space is currently vacant.

On a self storage property? Sounds like this is a commercial property and not a home so yes 6.25 is good. As long as you agree to the 10 floating years because that is kind of gambling. Did you explore a fixed rate option already?

Another lender will do a 10 year fixed option at 6.40% but LTV is 75% but 25% down is starting to push it for me. More comfortable at 80%.

Yes, that’s a good deal. We are trying to underwrite every deal to a seven handle.

At 7.00% interest, it still checks out to about a 15% cash on cash return.

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I don’t know to be honest. I’m on the fence about partners. I’ve heard compelling arguments on both sides whether to partner or not. I don’t necessarily need funds for this deal (purchase price is under $700k), but it could be nice to not put all eggs in one basket.

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