All Forum Posts by: Tom Keating

@Prab C. @Rishi B. @Peter Halliday Peter and Rishi are correct, Freddie Mac and Fannie Mae have Small Balance Loan programs for multifamily assets, 5+ units up to 80% LTV. I'm a multifamily financing specialist at CBRE and would love to chat more. Feel free to message me for more details.

Tom Keating

Non-recourse 30-yr amortization is very common in commercial real estate for loan $1mm and up.  6.75% is fairly high for a commercial real estate loan in this market.

Tom

@Daniel Boyt is this a multifamily property or single family.  If multifamily, what is the proposed value of the property?

Tom

@Austin Freeman I agree with @Chase Gochnauer on this one when he says the Freddie SBL program is the best deal. I can speak from experience that a Freddie SBL loan takes about 55 days to close, but other than that the process isn't much different from a bank loan. On top of that, the program offers 30-year Amortization with up to 10-years fixed options with Interest Only capabilities. Chase and Austin, feel free to reach out to me if you have any further questions on the Freddie SBL program. I am a straight shooter and will give it to you straight. Thanks

@Scott Skinger Let me explain, For Option 1, the prepayment penalty will be Yield Maintenance, Option 2 is a Soft Step Down prepay option meaning that in the first 2 years if you refinance or sell you would have to pay a prepayment penalty of 5% of the unpaid balance of the loan, then 4% in years 3 and 4, 3% in years 5 and 6 and so on. Option 3 is our Modified Step Down prepay option which is a 3% prepay penalty in years 1-3, 2% in years 4-6, and 1% for years 7-10.

I most likely put this quote together, I am assuming the broker selling this property provided this to you because your name does not sound familiar? I can't remember which property this is for, feel free to PM me, I can help you with any questions and get you an up to date CBRE Freddie SBL quote. Pricing might have changed depending on how long ago this quote is from.

Thanks Scott

@JC Conchas - What would be the purchase price of the property? If the property would require a loan of $1mm or more, I am confident you can attract 75%-80% LTV non-recourse loan. Feel free to PM me with any other questions.

@Brian Karlow @Amy A. @Michael Masters, Yes, you could expect lower rates along with better terms. Freddie Mac SBL program provides up to 80% LTV, lower rates, up to 10-years fixed, 30-year amortization fully non-recourse debt. These commercial programs that provide these advantageous terms and fully non-recourse debt, the loan amount typically needs to be $1mm+.

@Brian Karlow you will need to go to a Freddie Mac SBL Seller/Servicer in order to receive a loan in this program.  A seller/servicer such as CBRE who is currently #1 in volume and turn times.  Feel free to PM for more details.

@Wendy Carpenter @Richard Copeland, I agree that Freddie Mac and Fannie Mae have some great programs for multifamily commercial financing.  Please, PM me if you have any further questions, CBRE in currently the #1 non-bank originator of multifamily financing in the US.  

@Ian Ray I have a client who I think would be interested in the two smaller deals. Can you send me the info and the broker details?

Thanks

@Christian Podedworny @Christian Podedworny, I work at CBRE as a direct seller/servicer of the Freddie Mac SBL Program.  I think your assumption of 4.5-4.90 is a fair assumption.  I would note that each equity investor holding 20% or more equity will be required to sign the carve outs as a guarantor.  The loan will be fully non-recourse.  Feel free to PM me with any questions.