The 504 Debt Refinancing Program is structured like the traditional 504 Loan Program:• A first lien loan from a private-sector lender covering up to 50% of the project cost.• A second lien loan secured from a Certified Development Company, which is backed by an SBA-guaranteed debenture, covering up to 40% of the project cost.• Borrower …
On this episode of the Investor Financing Podcast we discuss builder loans for new construction properties. General Loan GuidelinesProperty TypesSingle Family Residence (attached/detached, Investment Property Only)2-4 Unit Property (duplex/triplex)Townhomes/Row Houses/Low Rise CondosSmall to Midsize Apartment BuildingsSubdivisionsLoan TermsLoan Amounts: $100,000 to $10,000,000+Loan to Value: up to 70%Loan to Cost: up to 90%Loan Terms: 6 to 18 …
Did you know? HUD loans are the “secret sauce” to getting the best terms on multifamily loans. They offer:Up to a 40-year fixed-rate, fully amortizing loan (eliminates interest rate risk) (rates are at historic lows right now)Lowest long term fixed-rate of any multifamily loan program availableNon-recourseNo networth or liquidity requirementsAssumable mortgageLTV’s 5% to 10% higher …
In this episode for the Friday edition we interview a great guest and learn how he has scaled up his real estate portfolio and now has diversified into larger syndication projects. Frank Patalano has been investing in Real Estate for over a decade. Starting out as a school teacher, he used his income to buy …
In this episode, we talk about refinancing your rental properties with conventional financing vs commercial or portfolio lending. We walk through the pros and cons for each type of loan product.
...The DSCR calculation formula is as follows: Net Operating Income / Annual Debt Service = DSCR The lender will have the underwriter follow these steps when calculating income and expenses to determine the DSCR. To help you with your DSCR calculation bear in mind that the underwriter will: Utilize 5% to 7% vacancy depending on …