So it already has to be a REALLY good deal.Best I’m using for my clients right now is a 90/100/75 program up to 92.5% LTC that can float down to 10.24-10.49% for 12 months, interest on drawn funds only, at 2-3% origination.

Let’s say half of those have floating rate debt and are in trouble, that means only 5% of the MF properties are in trouble AT MOST.So there is some distress but it is limited.

Plenty of sponsors showed big returns, but then got floating rate, high leveraged debt and overpaid for properties.

Looking for insight into borrowing money to cover down payments and floating capital between renovation draws.

They were based on assumptions that low floating rates would stay low forever and so would cap rate compression.

You do not want to use it for a down payment where you will end up having to float it for 3-5 years before you can refinance the next home to pull out enough cash out to pay it off.

Catch my drift?

You're left with 2 days floating in between these stays that, because of your 3-day minimum, will not even be seen by anyone searching.

Knowing what I know about Bankcorp, the loan would have had a floating rate, likely somewhere in the range of SOFR + 3-5% and would mature in October of this year. 

We floated the most affected areas, probaly should have spent the extra $1000 to float the entire house.