All Forum Posts by: Carol Bloom

@Conor Freeman with what you outlined of having a 1:1 net worth to loan request and 10% of loan balance in post close liquidity and no BK or foreclosures, I would qualify as a borrower. I guess the tough part as I'm experiencing is to find the deal. 

I greatly appreciate you taking the time to explain and help me to better understand the requirements needed to qualify for a Freddie SBL and it's a term sheet and not a pre-approval letter I need. Got it! :)

@Edward Fernandez thanks for your comments. I know the bill isn't final yet, but good to hear the real estate portion of a 1031 is still intact. 

@Conor Freeman thank you for clarifying that a term sheet is needed for a commercial loan not a pre-approval letter as in residential. Would I be correct to say next steps are:

1. find a 5+ unit property

2. work with a Freddie lender for a term sheet on property found

3. Develop good communication with a Freddie lender who can quickly produce a term sheet in 1-2 days to make an offer on the property. 

@Andrew Beauchemin thanks for your reply. In part it's managing my expectation of a reasonable timeline. I like the Freddie Mac program because it offers non-recourse loans which is what I need for a self-directed IRA LLC with only 20-25% down instead of 40% with traditional non-recourse loans lenders.

@Michael Le  I thought I was working with a CBRE lender who works with the Freddie Mac multifamily program but I've been waiting 4 weeks, no pre-approval letter after supplying all the information he requested. I can't believe it takes this long with poor to no follow up, I better start looking for another lender. 

Hello BP Community!

I am receiving conflicting opinions if I need a pre-approval letter from a Freddie Mac lender for a multi-family 5+ units. I will be financing the property using the Freddie Mac Small Balance Loan program.  Some of the commercial brokers are asking for a pre-approval letter, some commercial lenders tell me a pre-approval letter is only needed for residential loans, can someone please clarify the process. 

Greatly appreciate the help!

Carol

@John Barr thanks for recommending  the book Upside, I ordered it today from Amazon. 

@Joel Owens what does the bill say about the 1031 exchange, any changes?

@David Wales I'd love to attend but will not be in town please let me know when the next meeting happens.

Thanks for organizing!

Sweet!! This is great intel, many thanks for sharing!