All Forum Posts by: Brock Freeman

In a word: ABSOLUTELY! 

All of our borrowers for our commercial bridge loan product are essentially doing BRRRR. The difference for most of them is that there is no need to empty the building, especially for multifamily; that means there is at least some income coming in the whole time.

However, the LTV/LTC available for CRE loans is going to be less than with most residential hard money loans. Right now the max is around 75%, although before the pandemic you could find 80%.

The positive over SFR however, is a more predictable forced appreciation value post renovation, and ability to get an exit loan that gives you long-term financing and reimburses you for renovation costs, and perhaps part of your original down payment.

I'll also add that working with a good CRE loan broker is your best bet!

Our goal is to help you with your commercial or multifamily purchase

• Direct Portfolio Lender
• Bridge loans that help your situation
• Loan Amounts up to $1 million
• Rapid closing
• Make-sense underwriting
• Digital Lending to speed the loan process

Get pre-qualified here

Small stuff like this for long term financing you can try your local credit unions. Many times they are easier on the pre-pay as well. If not, then you will need a bridge loan for perhaps a year to get those rents up to market and rehab at least some of the units.

Most loans on Commercial Real Estate are recourse and they can be seen on your personal credit. There are some non-recourse lenders out there, but that will cost you more, and they may only go for larger loan amounts.

In this episode, Brock Freeman interviews Joe Whitesel, discussing multifamily borrowing in the pandemic from his perspective as a commercial mortgage lender and broker.

Listen now to this interview at 

https://podcast.kirklandcapitalgroup.com/episodes/multifamily-borrowing-in-the-pandemic-interview-with-commercial-mortgage-lender-and-broker-joe-whitesel

Contact us for your 5+ unit multifamily bridge loan needs. Our goal is to help you with your multifamily purchase.

• Direct Portfolio Lender
• Bridge loans that help your situation
• Loan Amounts up to $1 million
• Rapid closing
• Make-sense underwriting
• Digital Lending to speed the loan process

Hello Jeffrey. I don't really think there is enough info here to give you great feedback. A few considerations though:

1. 70-80% LTV is NOT conservative right now, especially if this is residential real estate; you would need to be <70% LTV for the "conservative" label IMHO
   
2. If you are talking multifamily or industrial (not some of the other depressed CRE or fix-n-flip residential) with the equity conversion, that might just appeal to investors, otherwise bumping the coupon would be where you need to be net returns wise.

Reg A+ was created by the Jumpstart Our Business (JOBS) Act in 2012. It aims to encourage small business growth and development by streamlining the process of going public and easing limitations on the number of non-accredited shareholders an eligible offering can have. The JOBS Act went into effect in 2015.

Under Reg A+, a company can:

1. Raise up $50 million in capital in a 12-month period
2. Publicly solicit investors and advertise, as long as you include certain disclaimers
3. Avoid the cost and complications of SEC and state securities registrations
4. Receive an expedited, streamlined review of its offering memorandum
5. Confidentially submit its offering memorandum to the SEC
   
6. Issue unrestricted securities to investors, potentially creating a secondary market

Now, all those sound great for a syndication offering, right? Here's the challenge... timing and cost. It can take 1-6 months (for a new issuer look at the longer end of that) to navigate through the SEC process for the offering. Cost can run $25k to $100k+. That's problematic when you have a 60-90 day closing window on a property, and really means you need to have a property worth $5+ million to make it worthwhile. 

Reg A+ could work for a Real Estate fund but that is a whole other level of difficulty.

This is why real estate syndications continue to be Reg D 506 b or c as they can be launched in a very short period of time. 

Joe Whitesel at Northwest Commercial Lending

Take a look at endpointclosing.com for both good pricing, and digital app and closing process. Sarah Bahlman is the Washington rep.