All Forum Posts by: Dirghayu Desai

Thank you for the very detailed responses. 

I am trying to understand the mechanics/math behind a CMBS loan assumption and the cash/equity needed from a buyer who would acquire the property and assume the loan.

Example parameters below:

Original Loan Balance: $7.5M

Current Balance: $7.0M

Acquisition price: $9M

Remaining loan term: 80 months

 Also any website/articles outlining the loan assumption process would be appreciated. 

Thanks everyone. This is good information. We are in the preliminary stages of acquiring a hotel in NC and were told by a broker that at 30% down, we would have to sign PG and most non-recourse loans for hotels start at 60/40 LTV. Could that be because its our first project as owners?

Can someone explain how personal guaranty works on a commercial investment? LTV is: 70/30

6 partners and each is ~16% owner

Do all partners have to sign a personal guaranty (PG)?

If we sign a PG and the business can't meet its debt obligations what steps take place? How does the lender enforce the PG? What amount will the lender ask for?

Would the lender come after the partners for the whole amount of the remaining loan..i.e. whatever is left on the $4.2M or are the partners only responsible for the delta between what the lender recovers from sale of hotel and what's left on the loan?