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Timing the Market – 3 Step Process to Win the Refi Game

Fear and greed are the two main drivers that commonly derail day traders in the stock, futures, and Forex markets. Given the wild swings in the stock market due to COVID-19, it is hard not to be intrigued with the quick gains the stock market could provide if only you pick the right side of a trade. 20% in a day seems way better than 20% in a year that real estate can offer.
Having played that game quite unsuccessfully […]

Interest Rates in Uncertain Times

What Toilet Paper Shortages Teach Us About Interest Rates

I hate jumping on the Coronavirus bandwagon of content, but like it or not, it is having a real effect on our global economy and is causing a lot of uncertainty in the financial markets. This uncertainty is impacting the interest rates available on commercial real estate debt.

It’s really hard to say, nor is the point here to talk about what the Coronavirus situation really means to our economy long term. It is too early to really know.

What we […]

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HUD Eliminates Three-Year Rule on 223(f) Applications

Exciting news for value-add and new construction investors! On March 2, 2020, HUD announced the elimination of the three-year lock-out rule for applications to refinance or acquire existing properties under the Section 223(f) loan program.

This exciting change will open up opportunities for borrowers to refinance stabilized multifamily properties much sooner after construction completion and lease-up than previously available.

This primarily benefits those whose business model is to maximize leverage. Virtually all other loan programs – banks, Fannie Mae, Freddie Mac, […]

PFS & SREO

Want a Good Personal Financial Statement?

We all know the saying – “You never get a second chance to make a great first impression.”

The purpose of this article is to help you make your first impression with your mortgage broker or loan officer a great one.

And how do you do that?? You have a current and complete Personal Financial Statement filled out and ready to share.

The starting point for all commercial real estate loans is the Personal Financial Statement (PFS) with a Schedule of Real […]

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Commercial Loan Prepayment Penalties Unwrapped

Nothing says romance quite like a prenuptial agreement does it?

That comment is certainly facetious, but sets the stage for an analogy regarding the prepayment penalty aspect of commercial loans. It is important to understand what you’re getting into with your loan. The loan documents explain all the terms of the loan, and the prepay piece is really the predetermined cost of breaking up with a lender.

A prenuptial agreement defines and outlines what things will look like in the event […]

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10 Biggest Mistakes Made When Seeking Multifamily Agency Financing

There’s lot of interest in Agency (Fannie Mae and Freddie Mac) debt in the multifamily universe these days. Because these loans limit your personal liability, net you higher cash flow, allow higher leverage (larger loan amounts) that increase your returns, provide you more surety of future results, and allow for virtually unlimited growth – there’s a lot to like.

These bank-beating features such as non-recourse, 30-year amortization, low interest rates, up to 80% leverage, long fixed terms, and interest only […]

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More Than Double Your Returns with This Strategy – Bridge Loan vs. Perm Loan Case Study

Everyone wants the best rate and terms when financing a multifamily deal. It goes without saying. We naturally seek quotes and rate sheets with the lowest possible published rates.

Rate is the simplest “common” denominator used to compare different loan options. It is easy to understand, but not always the best gauge of overall returns. There are several other variables to consider.

We want that low rate, but we also want leverage. Leverage is how we juice our returns. It’s not […]

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Will This Blow Your Mind Too? Investing in Low Cap Markets May Be An Overlooked Opportunity

There was a pause on the other end of the line, and then he said… “You literally just blew my mind.”

This was the response I received after sharing with a new friend a powerful example of how using cap rates – when properly understood – to your advantage, can dramatically increase the bottom line of a value-add investor in the multifamily space. This simple insight dramatically changed the mindset of an experienced single-family investor getting his start in multifamily. […]

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Runway is Clear for Agency Financing in 2020

We are now a month into 2020 and wanted to share a few
exciting updates about Agency (Fannie Mae and Freddie Mac) loans for this year.
In a nutshell, Agency loans provide a great non-recourse alternative to
recourse bank loans with additional bells and whistles like 30-year
amortizations, interest only periods and low interest rates, all of which
combine to increase your net cash flow.

Both Fannie Mae and Freddie Mac announced their year-end
2019 production volumes last week. As such, it’s worthwhile to share a […]

Multifamily Syndication
Multifamily Syndication Team

Better Together: Using Syndication to Grow Your Multifamily Portfolio

Syndicating Deals Is the Next Step to Achieving Your Investment Goals

As the multifamily market continues to grow, you may be wondering how newer multifamily investors are able to complete large transactions or add big commercial properties to their portfolios. If your investment goals are at Point A and you want to get to Point B quickly, the answer is right in front of you.

Multifamily syndicated deals are the oil in the multifamily gears allowing deals to move forward and […]