sharon-mccutcheon–8a5eJ1-mmQ-unsplash

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 […]

zoe-holling-UDfmSK4AS3E-unsplash

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
fancycrave-219666-unsplash

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 […]

charts-computer-data-669615

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 […]

action-adult-advice-1120344

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 […]

apartment-architecture-balcony-259950

When is a Full Recourse Loan Acceptable?

The answer to that question is, complicated. Let’s start with a simple definition and talk through some of the scenarios that make sense.

A recourse loan is a loan where the borrower is personally liable for repaying the outstanding balance of the loan, above and beyond the underlying collateral. For example, in a worst-case scenario where the underlying asset must be liquidated, the borrower is still on the hook for the unpaid balance after the liquidation.

In a non-recourse loan, the borrower is not […]

astronomy-earth-explosion-2159

The Beauty of Leverage in Multifamily Investing

Using Leverage to Increase Your ROI

When deciding how to invest your hard-earned money, multifamily investments continue to be a source of above-average returns. Data from a recent study forecasts a healthy economy and even more lifetime renters as interest rates rise and the housing market shifts.

Some refer to profits from real estate investments as “mailbox money”—checks that show up in your mailbox from your savvy real estate investments. But how can you increase these returns? The answer is simple—so […]

abstract-apartment-architecture-221503

Why a Carefully-Crafted Investor Resume Is the X Factor for Approved Multifamily Funding

Creating an Expert-Level Investor Resume: 101

You’re ready to invest in your next multifamily property. You’ve found the right property in the right location, you’ve chosen a broker to help find you the best loan—but now it’s time to actually get the funding. While choosing a location for your next multifamily investment may be the first big hurdle in the buying process, acquiring the loan necessary to complete the deal is a series of events you can’t overlook. The better […]