All Forum Posts by: Cassandra Sampson

Hi Jason, which type of property is it? A bank can do 20% down but depends on a number of factors. 

Absolutely TJ, you raise a really good point. In addition to that information, we need to know from our clients what they are looking more. Sometimes the rate is the most important thing, other times it's finding a non-recourse option, then other clients may be more focused on prepayment options. Every deal is just so dependent on so many factors! 

Making sure you work with brokers and lenders that request this information upfront before giving you 'terms' also makes you aware of the credibility of their organisation!

Thanks for your reply! 

Hi, Investors!

I have been thinking about this for a while now and since being more active on here, I have noticed that something that comes up a lot is that people aren't aware of the information that is needed in order to get a quote for financing.

On a day to day basis, even from people who have been in the industry for a while I get push back on when I ask for information. Often people say, but can you just give us terms? I can give you a rough (very rough) estimate based on what we have seen in other deals that we are working on BUT the truth is in order to produce a quote that is accurate and not a waste of your time (and mine) and a disservice to you, we really do need solid information.

When you work with us we will ask for the following -

- A purchase agreement for the acquisition OR if it's a refinance, the amount that is owed.

- Historical financial information on the property, a T12 (for multifamily), a YTD P&L and a rent-roll.

- Any additional information you may have such as an OM or an old appraisal etc.

- Leases (not necessarily needed at first, but we will need to review these).

On the sponsorship side, we need to know -

- Net worth and liquidity of each sponsor with a share of 20% or more.

- An REO schedule and information about experience in commercial/multifamily investing.

I have been told in the past from people that other brokers or lenders will provide terms without this information, indeed people out there that will say "we can get you a 4% rate on a 30 yr am and non-recourse!" and they blanket it and then, once you get a real quote, that is completely inaccurate! I see this a lot....

Once this information is received by us, our job is to thoroughly underwrite it to make sure that the deal makes sense for you and for your company, in addition, it helps us to determine which lender we would go to (agency, bank, hard money etc.). It is necessary and it saves everyone involved a lot of time.

I hope this clarifies things for both new and seasoned investors alike! At the end of the day, I want to assure people that when I ask for the above material, it is not because I am pestering them, but is, in fact, necessary in order to get any level of financing.

Thank you!

Hi, Investors!

I have been thinking about this for a while now and since being more active on here, I have noticed that something that comes up a lot is that people aren't aware of the information that is needed in order to get a quote for financing. 

On a day to day basis, even from people who have been in the industry for a while I get push back on when I ask for information. Often people say, but can you just give us terms? I can give you a rough (very rough) estimate based on what we have seen in other deals that we are working on BUT the truth is in order to produce a quote that is accurate and not a waste of your time (and mine) and a disservice to you, we really do need solid information. 

When you work with us we will ask for the following -

- A purchase agreement for the acquisition OR if it's a refinance, the amount that is owed.

- Historical financial information on the property, a T12, a YTD P&L and a rent-roll.

- Any additional information you may have such as an OM or an old appraisal etc.

- Leases (not necessarily needed at first, but we will need to review these).

On the sponsorship side, we need to know -

- Net worth and liquidity of each sponsor with a share of 20% or more.  

- An REO schedule and information about experience in commercial/multifamily investing.

I have been told in the past from people that other brokers or lenders will provide terms without this information, indeed people out there that will say "we can get you a 4% rate on a 30 yr am and non-recourse!" and they blanket it and then, once you get a real quote, that is completely inaccurate! I see this a lot....

Once this information is received by us, our job is to thoroughly underwrite it to make sure that the deal makes sense for you and for your company, in addition, it helps us to determine which lender we would go to (agency, bank, hard money etc.). It is necessary and it saves everyone involved a lot of time.

I hope this clarifies things for both new and seasoned investors alike! At the end of the day, I want to assure people that when I ask for the above material, it is not because I am pestering them, but is, in fact, necessary in order to get any level of financing.

Thank you! 

Hey Michael,

Are you referring to multifamily or something like retail or office?

The rates are very hard to quote without knowing specifics of the deal, the market and sponsorship. At the moment we are seeing around 4.25% - 5%, depending on those factors above. I've been quoted 3.65% on one deal however the sponsor is worth high millions and the property is giant and the loan amount is $62M. For retail properties, we have been getting quotes in the mid to high 4's. Multifamily generally is more competitive as far as rates go.

Let me know if you have any other questions!

I agree with @Bjorn Ahlblad. I would be more surprised if it was actually built and finished. Construction is a tough game at the moment, with lots of competition, especially in Vegas. 

For your first step into multifamily, I would really recommend sticking with an already established apartment complex. That it going to be much easier to get financing for. Getting long term financing on an acquisition of an apartment building that shows an operating history and a good NOI over the last few years is much much easier than financing for a nearly built complex in a market like Vegas.

Hi Parker,

Senior living is indeed a great area to move into. Lenders tend to really like it, especially in a strong market, with a history of steady occupancy. 

I personally haven't invested in senior living, however, in my role, I procure financing for people that do. We have done many senior living loans, both acquisitions and refi's and all have been met with excitement from lenders (they were strong sponsors as well). 

So, in short, yes, although the underwriting and evaluation of a deal can be more complicated and longer, the benefits can absolutely pay off. I always recommend that people look into senior living as an option.

Cassandra

I'm a commercial mortgage broker but I am a qualified Speech and Language Therapist!

Getting a 75% LTV loan is more likely. SBA is possible but costs you so much more in the end with all the fees and backend points.

In saying that, the loan amount really does depend on the asset, location and sponsor. If you want to reach out to me with more specific information, I could guide you a little easier.

Thanks,

Cassandra

Welcome, getting into multifamily is exciting!

I'm a commercial mortgage broker and have worked with new investors in the past. Feel free to reach out with any questions.

All the best,

Cassandra