Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

94
Posts
140
Votes
Ian Stuart
  • Lender
  • Seattle, WA
140
Votes |
94
Posts

Multifamily Portfolio Loan ($12M - Denver, CO)

Ian Stuart
  • Lender
  • Seattle, WA
Posted

Hi Bigger Pockets: 

I have a client who is bidding on a portfolio of six multifamily properties totaling 98 units in Downtown Denver. They're seeking a portfolio mortgage (either crossed or uncrossed) of ~$12M (70% LTV; 1.20x DCR; 6.50% DY) - and was wondering if anyone had any portfolio lender recommendations?

Insitutional-ish client. Primarily IRR driven. Attracted to max leverage, partial term interest only loan executions similar to standard Freddie / Fannie mortgaes. Any portfolio lenders comfortable lending at 70% with half term IO, 25-30 amortization, and limited P&I/tax/insurance/replacement reserves would be right in their sweet spot.

Little background on me - I'm a mortgage banker at Berkadia in Seattle specializing in conventional and small balance Freddie Mac and Fannie Mae mortgages - typically >$20M. Agency guy through and through. As a Freddie Mac Seller/Servicer and Fannie Mae DUS Lender, my immediate inclination was to take the deal to Freddie SBL and Fannie Smalls. 


Unfortunately, Freddie doesn't like cross collateralized portfolio loans under $50M in aggregate - they're more inclined to do six individual one-off deals, which puts upward pressure on my client's closing costs and  origination fees. Fannie could do the portfolio, but their minimum 7.25% DY requirement is killing my loan proceeds. In addition - in order to hedge against COVID related unemployment and rent delinquency risk, Fannie now requires 18 months P&I, 12 months tax/insurance/replacement reserves due at closing. This is not attractive - especially at a high 3.00% (pushing 4.00%) rate with no IO.

95% of the time, this client goes for agency financing - but given the nature of this small loan portfolio - I don't think agencies are the right puzzle piece here. 


Any recommendations would be much appreciated!




Loading replies...