All Forum Posts by: Nathan Click

@John D.

Do you still have a financing need? I'd love to help you with your project. I may be able to provide a financing solution that fits your needs. Please feel free to contact me:

Nathan Click

[email protected]

@Suzanne Griffiths

Do you still have a financing need? I'd love to help you with your project. I may be able to provide a financing solution that fits your needs. Please feel free to contact me:

Nathan Click

[email protected]

Ronald,

Do you still have a financing need? I'd love to help you with your project.  sounds like you are looking for a loan to cover acquisition and rehab.  I may be able to provide a financing solution that fits your needs. Please feel free to contact me:

Nathan Click

[email protected]

Joel Owens,  

Thanks for your comments, it is important to understand the details of a financing transaction. A CMBS loan is not the best solution in all cases but it is a fabulous solution for those investors looking to finance or refinance a property without submitting to personal guarantees or typical credit checks. Generally seeking the decision to commit funds to a project is based on the assets profitability. You are correct in saying that legal can be a high initial cost, which is why most borrowers considering CMBS will likely be looking a projects $3M and up. Having said that our lenders are willing fund projects as low a $1M. As far as the asset's books, perfection or even near perfection is not a requirement. The property does need to be generating revenue and be stabilized as long as we can prove that and the debt service is acceptable the deal is doable.

I may be able to help you with this project.  I'll need to know some more details. Please contact me to discuss. Thanks

[email protected]

866-865-0121

John,

I am based out of NC I may be able to help you connect with a solid lender.  Please contact me to discuss.  Thanks 

[email protected]

866-865-0121

Please contact me to discuss.  

[email protected] 

A CMBS loan or Commercial Mortgage-Backed Security loan, also called a Conduit Loan, is a unique method of securing financing for stabilized revenue-generating investment properties. These loans are not as familiar to investors as traditional loans, although they have been in play since the 1990s. Funds for these type of loans are sourced from securities. The security is then collateralized by commercial real estate notes. These loans are used for stabilized revenue-generating commercial properties such as apartment buildings, office complexes, mixed-use real estate, or hotels. CMBS loans have advantages over traditional financing. They are non-recourse, meaning a borrower can avoid signing a personal guarantee and fixed interest rates for five to ten years. Also, expect a term of ten years with an amortization of about 25 years. CMBS loans are generally 75% LTV based on appraisal. Currently, rates can be as low as 4.75%, which is a big advantage considering that, generally speaking, conduit loans are not credit-driven therefore, low credit scores have absolutely no impact on the financing. The underwriting decisions are made based primarily on the asset's cash flow. There are some disadvantages, such as, owing a prepayment penalty and a balloon payment at the end of the term; however, refinancing is always an option. Once again, these loans are a great solution for an investor seeking to acquire or refinance a stabilized, revenue-generating, non-owner occupied asset such as apartment buildings, office complexes, mixed use real estate, or hotels.

I hope this doesn't sound to much like a "promotion" its not meant to be. I assume real estate and finance brokers can appreciate this situation. After several months of working with a borrower seeking a multifamily property we find a great $5.2M student housing acquisition. The property is completely underwritten, CAP rate of about 7%. Should be a slam dunk, right! Unfortunately our borrower gets cold feet at the 11th hour and refused to sign the term sheet. Now we are all left at the alter. In this game, these things happen, the thing about Real Estate is that it can be risky. On the bright side if anyone is looking for a new multifamily acquisition, feel free to reach out to me; 75% financing is already lined up!