RPP - Financing Using CMBS & Private Lenders with Nick Chapman

Dylan Marma and Mike Taravella interview Rand Capital’s Nick Chapman to discuss Fannie and Freddie’s lending limits for 2019 and the uptick in alternative funding sources. These alternative funding sources are CMBS and Private Lenders. CMBS: Very common funding source for office space, but becoming more common in the multifamily space Minimum Loan Amount: $3M Loan-To-Value (LTV): 75% Can have higher LTV by leveraging mezzanine debt (85%) Loan Term: 5 and 10 year terms  30 year amortization Less flexible compared to Fannie & Freddie Similar requirements to Fannie & Freddie when it comes to closing Closes just as quickly as agency and in many cases faster Fixed Rates, which are based on Swap Rates Application Fee is $45,000 But you do receive most of that back regarding  Potential for Full-Term Interest Only Mortgage at 65% LTV - From 1-3 yrs at a higher leverage to full term I/O at 65% LTV   Private Lenders: Nondepository bank that is privately held Minimum Loan Amount: $1M Loan-To-Value (LTV): 75% Can have higher LTV by leveraging mezzanine debt (85%) Loan Term: 5 and 10 year terms  30 year amortization Nonrecourse Closing Time: 30-60 days depending on complexity of deal Requirements: Net Worth Requirement: 20% of the loan amount Post-Closing Liquidity: 5% of the loan amount  ~50% half of what agency debt requires Much more favorable for new investors   Attend Multifamily Mastery 3 and use the discount code “RPFAM” for 20% off!   Contact Information: Nick Chapman’s Email Rand Capital Website   Invest with Rand Partners  Follow Us on Linkedin @Randpartners Follow Us on Instagram @Randpartners Follow Us on Facebook @Randpartners

Episode 87 of the Jake & Gino: Real Estate Investing & Multifamily podcast, hosted by Dylan and Jake, titled "RPP - Financing Using CMBS & Private Lenders with Nick Chapman" was published on September 11, 2019 and runs 18 minutes.

September 11, 2019 ·18m · Jake & Gino: Real Estate Investing & Multifamily

Summary

Dylan Marma and Mike Taravella interview Rand Capital’s Nick Chapman to discuss Fannie and Freddie’s lending limits for 2019 and the uptick in alternative funding sources. These alternative funding sources are CMBS and Private Lenders. CMBS: Very common funding source for office space, but becoming more common in the multifamily space Minimum Loan Amount: $3M Loan-To-Value (LTV): 75% Can have higher LTV by leveraging mezzanine debt (85%) Loan Term: 5 and 10 year terms  30 year amortization Less flexible compared to Fannie & Freddie Similar requirements to Fannie & Freddie when it comes to closing Closes just as quickly as agency and in many cases faster Fixed Rates, which are based on Swap Rates Application Fee is $45,000 But you do receive most of that back regarding  Potential for Full-Term Interest Only Mortgage at 65% LTV - From 1-3 yrs at a higher leverage to full term I/O at 65% LTV   Private Lenders: Nondepository bank that is privately held Minimum Loan Amount: $1M Loan-To-Value (LTV): 75% Can have higher LTV by leveraging mezzanine debt (85%) Loan Term: 5 and 10 year terms  30 year amortization Nonrecourse Closing Time: 30-60 days depending on complexity of deal Requirements: Net Worth Requirement: 20% of the loan amount Post-Closing Liquidity: 5% of the loan amount  ~50% half of what agency debt requires Much more favorable for new investors   Attend Multifamily Mastery 3 and use the discount code “RPFAM” for 20% off!   Contact Information: Nick Chapman’s Email Rand Capital Website   Invest with Rand Partners  Follow Us on Linkedin @Randpartners Follow Us on Instagram @Randpartners Follow Us on Facebook @Randpartners

Episode Description