May 27, 2019
For various reasons, not all apartments will qualify for a
Fannie Mae or Freddie Mac loan today.
An example could be that current net operating income (NOI) versus
sales price does not support a higher leveraged loan amount. Today,
borrowers are seeking the right loan structure that can “bridge”
them from point A to point B. Bridge loans may be the right
financing strategy for value-add investors with a clear plan to
increase future property income. Most bank bridge loans will only
do low leveraged (60-65%), full recourse, short term loans. Bridge
loans are NOT HARD MONEY LOANS. Underwriter John Q. Banker explains
how to qualify for a HIGHER LEVERAGED NON RECOURSE REAL ESTATE BANK
BRIDGE LOAN when a permanent lender does not offer an immediate
solution based on the asset’s current financials, current occupancy
and condition. You want to listen to this conversation. John and
James go into detail on what is important in bridge lending.
Are you interested in learning more about how Multifamily
Syndications work? Please visit www.spiadvisory.com to learn more
about Michael Becker’s Real Estate Syndication business with SPI
Advisory LLC.