Current Market Conditions
At Realty Sales we keep in constant contact with our lenders, the national market conditions, buyers and sellers and the commercial real estate climate as it pertains to interest rates, loan to value and debt ratios. The Commercial Real Estate Market is dynamic, fluid and always changing. However, there are standards that we apply to MN Resort & Campground Sales to determine value. Below is the current market conditions as they apply to the MN Hospitality Industry and will be updated as necessary. As of today, the following conditions are present.
- Commercial Bank Financing: 5.0 – 6.25
- Bank Terms: 5 yr fixed, 20 yr.
- SBA 504: 4.96%
- SBA Terms: 20 yrs. on real estate / 10 yrs. on equipment
- DCR: 1.25 +
- LTV: 50% to 80% (> 20% down)
- Cap Rate: 9% +
- ROI: 10% + (cash on cash)
Contract For Deed (most common factors)
- LTV: 80% (20% down payment)
- Interest Rate: 4-6 %
- Terms: 20-30 yr. amortization w/ 3-5 year balloon payment.