3 Reasons Syndicators Should Embrace Mandatory Lender Reserves

Have you ever run out of gas? I’m not talking the figurative gas tank, but the literal one we have in our vehicles. (Tesla owners sub gas for electricity…)

I had a truck years ago that frequently over-stated the amount left in the tank and one time it got the better of me. Embarrassingly enough I ran out of gas. Such a pain to pull off to the side of the road, walk to the nearest gas station, spend a […]

non-recourse multifamily loans

The Difference Between Recourse and Non-Recourse Loans

I don’t have the exact quote, but the star quarterback turned real estate mogul Roger Staubach was asked about his biggest regret in building his real estate portfolio. His response was he wouldn’t have used debt with an unlimited personal guaranty attached to it. He felt that over years of experience a non-recourse approach was preferred.

That said, the point of this article isn’t to judge the merits or pitfalls of either recourse or non-recourse loans, but to provide context […]

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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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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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 […]

Runway

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 […]

multifamily construction loans
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Weighing Your Loan Options for New Construction Financing

Building the Right Financing Package for New Construction Loans

New construction spending is reaching all-time highs—what an exciting time to be a part of the ever-evolving real estate market. Forging ahead in both the established and emerging development markets are new mixed-use properties and multifamily builds.

As lending specialists, we’ve seen developers and investors use a myriad of tools to get their projects built. Just to name a few, funding sources can come from:

An individual’s own cash and capital
An […]

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 […]

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Why, What, When, and How? Preparing A Schedule of Real Estate Owned (SREO)

Simplify and Speed Up the Underwriting Process by Preparing Your Schedule of Real Estate Owned (SREO)

You’re in the driver seat when preparing documents to hand over to lenders and underwriters—these statements should help you put your best foot forward when buying your next multifamily investment property. They can be the extra push or reassurance lenders need for you to secure a great property.

A valuable document to have readily available is a schedule of real estate owned (SREO), also known […]

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Navigating the Underwriting Process between Quote and Closing

Preparing for Underwriting So Your Deal Gets Done

Securing a multifamily loan is like training for a marathon. By the time an investor decides on a loan, they may feel like they’ve reached the finish line, but really it’s just the halfway point.

Like training for a marathon, proper preparation leads to an accomplished goal. Investors who better understand the underwriting process will be more equipped to successfully secure funding for their next multifamily investment property.

Although it is easy to lump […]