All Forum Posts by: John Brady

@Mormon Redd Generally the older the property, the more R&M it will have, but it's not a significant difference 

@Haiyang A. Yes, for agency loans your net worth has to be equal to the loan amount. You can combine multiple sponsors‘ net worth’s to come to this amount if you need to.

@Joseph Redd I agree with @Sean Morrisey. All I do is freddie/Fannie small balance loans and I would say over 85% of them are in the 40-55% expense ratio range. This includes $250/unit for replacement reserves.

@James Kojo Going direct will always be cheaper than going through a broker, you just have to make sure the direct lender doesn't try to take advantage of you through the rate. Saying that, I work for a direct lender and will be more than happy to quote anything for you or beat by a wide margin any mortgage broker quotes you receive for an agency loan 

Anything above 5% for multi family and a loan over $1 million, you are getting taken advantage of

@Kyle Jean yep. $750k is the hard floor but then you get a bps adder. Still probably very competitive with bank financing

@Kyle Jean @Chris Ha Freddie and Fannie small balance have 30 year amortizing loans but both have a minimum loan of $1 million

@Mike Ball if the loan is over $1 million, any agency lender is non recourse

Also, there would be a 1% origination fee since this is how we make money, but it is a much better deal than the broker charging a 1% fee plus the direct lender charging another 1%. That's why I would suggest always getting a quote from a direct lender as it will always save you money. 

Correct. All of the ones we do are in the $10-$12k range. I can't speak for other lenders, but we use our own appraisers to appraise the properties and this cuts down some of the cost you might see from other firms that don't have their own in house appraisers. For small balance loans, we charge the same price every time regardless of the property price/loan amount. Note though, these are just our fees, you will most likely need to get your own legal counsel which isn't reflected in our fees or any title fees, etc and is taken care of by you on the side. I only work in the $1M-7.5M space, so anything above that I can't really speak much about, but for a $1.3M loan, these are the numbers we give borrowers. We can also waive the appraisal fee in some cases.