All Forum Posts by: Tom Keating

Not exactly, I am assuming you're not going directly to a seller/servicer and working through a mortgage broker. Please PM and we can discuss.  

@David K., I believe the current lender is offering you Fannie Conventional Commercial Financing, unless I am mistaken, but the terms seems to be of that. The small balance loan programs are different and offer different prepayment options in addition to Yield Maintenance. Since CBRE can originate the small balance loans we likely can offer less of an origination fee.  The larger property would be able to fit in both the Small Balance Program and the conventional program, however the smaller property would make a lot more sense in the small balance loan program.  Also, another thing to note, it is much more beneficial for the borrower to go directly to a seller/servicer who can originate this debt directly.  

@James Kojo, I appreciate the kind words. I also agree that I do a poor job on advertising my knowledge through my lack of information on my profile. 

@David K. I would be more than happy to set up a call to discuss the options I think you have in addition to the terms your bank is offering.

@David K. as @James Kojo has stated, I think your best option on these is either the Freddie or Fannie Small Balance Loan program. These programs offer 80% LTV on refinances, all non-recourse debt with flexible prepay options. The FHA loans are very fee heavy along with the fact it can take up to 6 months to close. I would love to discuss these deals further with you. Please PM your email and we can discuss.

In order to PM, you'll have to click onto my name, accept my colleague request, look at the top right corner of my profile and click "send message". Thanks David, look forward to talking with you.  

@Jackie Romo is this a commercial multifamily property(5+ units)? What will be the purchase price be?

@Dulce Beltran@Andrew Johnson, The Freddie SBL program is available throughout the US, we have financed a couple deals recently in Lemoore and LA and were able to provide 75%-80% LTV requiring only 20%-25% down. However, if a low cap rate is requiring DCR restraints then you might see the 30%-35% down payments required.

@Dulce Beltran, Yes, @Jon Holdman is correct. I'm not sure who you were working with but you can without a doubt get a commercial multifamily loan through the Freddie Mac Small Balance Loan Program with 80% LTV, 30 year amortization if your property is in need of a loan between $1-$7.5mm. Net Worth of the borrower principals combined need to equal the loan amount and the liquidity needs to be equal to or greater than 9 months of debt service.

Also, there is actually a Freddie and Fannie Commercial Conventional program. However, it usually is only for loans $10mm+, however it has very similiar terms as the Freddie SBL program. It does require 1.25 DCR. If you have any questions or would like to exercise your options through these programs please feel free to PM me.

@Manuel Perez Yes, I will reach out to some of my agency contacts tomorrow and see what I can get for you.  

Not a problem, @Michael Le. Yes, they have a handful of lenders to originate their Small Balance Loan (SBL) program.  Another great, non-recourse debt program that originates loans in the $1mm-$7.5mm range with interest only capabilities and flexible pre-payment.  

@Manuel Perez @Michael Le, Pre-Review is for both Fannie Mae and Freddie Mac loans and more specifically mostly in their Small Balance Loan programs.  Both Fannie and Freddie have licensed seller/servicers of their products, or DUS lenders. Both Freddie and Fannie loans are underwritten by those lenders and then their underwriting package is submitted to Fannie and Freddie for final review.  These lenders are very familiar with both of their operations so final approval is almost always positive if you're going to a well known highly ranked shop. Pre-review will come into place for certain areas that Freddie and Fannie require. For instance, certain South Side neighborhoods in Chicago require a pre-review/pre-approval in order to move forward with that deal.  The process takes sometimes 1-3 days to receive an answer back. As long as the property is operating well and in average to above average shape you shouldn't have an issue.  Freddie and Fannie will look at crime reports for that area, if their is a significant amount of "violent crime" they tend to try and shy away or limit their exposure on a case by case basis. 

@Carol Bloom If you're looking to purchase a stabilized multifamily property which would attract a loan amount greater than $1mm and you're looking to secure a Non-Recourse loan with interest only capabilities then the Freddie Mac Small Balance Loan is a perfect fit and your best bet for this one.  This program only requires 20%-25% down, with fixed rate terms up to 10-years and 30-year amortizations with up to 3-years of interest only.  If you would like to discuss this option further feel free to PM me.