12-Unit Apartment Building • $1,200,000 Purchase Price
First Capital Commercial Lending
| Property | 12-Unit Multifamily |
| Purchase Price | $1,200,000 |
| Loan Amount | $900,000 (75% LTV) |
| Interest Rate | 6.25% Fixed |
| Loan Term | 5 Years + Two 1-Year Extensions |
| Amortization | 30 Years |
| DSCR Requirement | 1.35x minimum |
| Recourse | Non-Recourse (standard carve-outs) |
| Prepayment | 3-2-1 step-down |
| Rate Lock | 30 days at application |
| Reserves | 6 months PITI |
Assessment: Strong equity cushion, healthy cash flow margin, personal assets protected, ample time flexibility with extensions, pricing certainty with 30-day lock.
Regional Bank Commercial Division
| Property | 12-Unit Multifamily |
| Purchase Price | $1,200,000 |
| Loan Amount | $960,000 (80% LTV) |
| Interest Rate | 6.50% Fixed |
| Loan Term | 3 Years + One 1-Year Extension |
| Amortization | 25 Years |
| DSCR Requirement | 1.20x minimum |
| Recourse | Partial (25% of loan balance) |
| Prepayment | 2% flat for 2 years |
| Rate Lock | 14 days at commitment |
| Reserves | 9 months PITI |
Assessment: Workable but tighter margins. Less equity cushion, minimal cash flow buffer, partial personal exposure ($240K at risk), shorter runway, and rate uncertainty.
Hard Money Capital Partners
| Property | 12-Unit Multifamily |
| Purchase Price | $1,200,000 |
| Loan Amount | $1,020,000 (85% LTV) |
| Interest Rate | 8.75% Variable |
| Loan Term | 2 Years, No Extensions |
| Amortization | Interest-Only |
| DSCR Requirement | 1.10x minimum |
| Recourse | Full Personal Guarantee |
| Prepayment | 5% flat, no decline |
| Rate Lock | None — floating rate |
| Reserves | 12 months PITI |
Assessment: Designed for the lender to win. Minimal equity cushion (15%), razor-thin cash flow margin, full personal exposure to all assets, no time flexibility, and complete rate uncertainty. Any market downturn, vacancy spike, or personal setback exposes you completely.