I'm planning my first SS acquisition in WA state this year and am curious what the credit landscape is like with banks and conventional institutions. My research is done on DSCR and the like, but I'm wondering what kind of LTV ratios the banks are providing on acquisitions of existing ss properties that have decent cashflow. Also, will I find any problems from the primary lending bank if my seller is doing a carryback for the down payment?
Any thoughts or comments based on the reality of today's credit market for SS is welcome.
You should be looking at an LTV no higher than 80% best case but more likely 65 to 70%. The Seller secondary financing emcumbering the acquisition could be a problem. Your track record as an operator will also be an important consideration. So hopefully you either have some experience manging another type of real estate or find a means to partmer with a good operator.