“Sweet Spot” Mid-Sized Multi-Family lending (Apartment Buildings with 6 or more units) program:
Loan Balance: $5mm-$10mm
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LTV: to 75%
Rate: 3.75%-5.75%*
Area: Eastern US
Time to Close: 45 Days (+/-)
Archive for the ‘Multi-Family’ Category
New Options for Multi-Family (Apartment Building) Loans – MasterPlan Capital’s Mid-Sized Multi-Family Loan
January 23, 2013More Liquidity for Multi-Family; Freddie Mac Adds Adjustable Rate Mortgages (ARM)
June 7, 2011Freddie Mac recently announced that adjustable rate mortgage (ARM) loans are now eligible for securitization into Freddie Mac Multi Family Mortgage Backed Securities (K Certificates).
ARMs will now be purchased by Freddie through its CME multi family mortgage loan execution path. The loans will be bought from approved lenders in Freddie’s network, pooled with other eligible loans, securitized by Wall Street investment bankers and sold to the public.
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MasterPlan Capital LLC; Commercial and Multi-Family Mortgage Loans, Equity Financing & Asset Management. View our commercial real estate finance services, see how we do business or apply for a commercial mortgage loan. Our simple (1 page) commercial mortgage request form takes only a moment to complete and you will receive prompt, professional service.
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Liquidity is, of-course, welcome as we continue to work out of our credit malaise, but as we have said before, it is somewhat disconcerting that such a large percentage of all multi family lending must come from the Government.
Click Here to Learn More about Freddie Mac Multi Family ARM Loans.
MasterPlan Capital Rolls out new CMBS Commercial Mortgage Platform for Multi-Family (apartment building) Loans.
December 21, 2010MasterPlan Capital is pleased to announce that, through a strategic partnership with an established CMBS lender, we are now able to offer our clients CMBS loans against multi-family (apartment building) properties.
The parameters for the CMBS program will be as follows:
Collateral: Multi-Family, LTV: to 75%, DSCR: 1.25x or better, Loan Size: $5mm-70mm, Area: Population Centers, Eastern US, Terms: 5, 7 & 10 years, Amortization: 25-30 years, Recourse: Non-Recourse, Underwritting: Full, Rates: 5%-7% (subject to change)
Clients and prospective borrowers can apply for a CMBS commercial mortgage online. Our Simple, 1 page, commercial mortgage application takes only a moment to complete and all inquires will receive prompt, professional attention.
Commercial Mortgage Lenders – Government Agencies Dominate Multi-Family (Apartment) Mortgage Sector
October 23, 2009There is not much liquidity for commercial mortgages in the retail, office or hospitality sectors of the commercial real estate industry, but there’s plenty of capital available for multi-family (apartment) buildings. The good news is that the Government is lending massive amounts of money against apartment properties; the bad news is that no one else is.
Virtually all the institutional loans being made today to purchase, refinance or build apartments are being funded or otherwise supported by Fannie Mae, Freddie Mac, The Federal Housing Administration (FHA) or The Department of Housing and Urban Development (HUD).
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For almost 2 years now, these Government Agencies have been the primary lenders to the rental housing industry. They stepped in to counteract the liquidity crisis that was caused by the collapse in the commercial mortgage backed securities markets (CMBS) and, almost by default, have become the only game in town. Even the banks who claim to be lending right now are, in reality, just originating loans and selling them to Fannie or Freddie.
As the economy improves traditional multi-family lenders, such-as insurance companies, smaller regional banks and Wall Street investment houses, would like to re-enter the market place with their own commercial mortgage offerings. Unfortunately for them, they are finding that they can’t compete with Uncle Sam who, of course, can simply print the money that it uses to lend.
Fannie and Freddie could maintain their dominance in multi-family finance indefinitely, but they won’t. They are lending at such levels because no one else can. As the economy improves and real, traditional banking becomes profitable once again, Government Agencies will retreat and allow the markets to provide the necessary capital. When that happens rates will be higher but the increased competition will mean more people will be able to qualify for loans.
Those lucky enough to meet the requirements of a Government Agency loan ought to apply now. When the time comes to lure lenders back into the market the Government will make itself less attractive by further tightening their underwriting criteria and lowering their loan-to-value ratios.
To secure the most favorable rates, terms and conditions that Government sponsored lending has to offer, a borrower must have decent credit (640 or better FICO) and a sound balance sheet that includes some liquidity (cash in the bank). Fannie and Freddie will lend up to 80% LTV but most loans that they are accepting now are in the 70%-75% LTV range. The property must be able to pay its own mortgage with a debt-service-coverage ratio (DSCR) of 1.2% or better and the building has to be stabilized (history of profitability). It goes without saying that the property must also be in good condition with little deferred maintenance necessary. The Government is sponsoring loans in all 50 states in-order to benefit the rental markets nationwide.
Loans typically come with 3, 5, 7 or 10 year terms and are amortized over 25 years. Currently rates are at historic lows due to the weak economy.
Apartment owners can get Agency backed loans through their local banks, larger national banks and through many other commercial mortgage lenders who enjoy direct and indirect relationships with Fannie, Freddie, FHA and HUD. You can’t apply directly to the Government.
Property owners who don’t qualify for agency loans will have to pay more to a private lender or work to meet Government requirements.
It’s good to know that there is liquidity for multi-family investing, but it is disconcerting to realize that the only willing and able lender is the US Government. As things improve this should change.
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Commercial Mortgage News – CMBS Delinquency Rates Continue to Climb – Hotels and Apartments are Worse Performers
October 21, 2009New CMBS delinquency numbers via Fitch show that hotel loans are the worst performing category of commercial mortgage paper.
The general delinquency rate for all CMBS (again according to Fitch) was 3.58% as-of September ’09. That represents a 54 bps up-tick in troubled loans compared to August and a whopping 2.4% jump YTD. The trend is unmistakable and disturbing.
Along with hotels (5.83% delinquent in September), multi-family loans are fairing poorly with a September delinquency rate of 5.72%.
Currently, the biggest debacle in multi-family is a non-performing $195mm loan against the Babcock and Brown portfolio that contains about 14 equity hemorrhaging properties in NV, FL and other locations in the Southeast. Colum Financial made that loan to B&B and, not surprisingly, they are now out of business.
The ever helpful IRS has changed its rules to allow loan services to modify CMBS loans before they default without the huge tax penalties that used to exist. But it takes capital to restructure loans and the capital markets, especially the mortgage bond markets, are still dysfunctional. In-other-words, not only is there no liquidity for new loans but there is no liquidity to fund modifications of the old loans.
It seems that all loans are troubled loans now.
If other sectors worsen we can expect overall delinquencies to hit 5% by the second quarter of next year.
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Private and Institutionally Funded Commercial Mortgage Loans – Online, by MasterPlan Capital LLC
Commercial Mortgage Originations Jump in Q2 but Remain Depressed Year Over Year
August 6, 2009Lo and Behold commercial and multi-family mortgage loan originations jumped by 50% in Q2 ‘09 as-compared to Q1. But, alas, they are still 53% below what they were in Q2 ’08.
We are up from down yet still down. This according to a survey conducted by the Mortgage Bankers Association.
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Commercial property owners and investors can apply for a commercial mortgage loan online at the user-friendly website of MasterPlan Capital LLC. Our simple, 1 page commercial mortgage application is quick and easy to complete and we will respond in 1 business day.
Commercial Mortgage Loans Went Up in ’08 (Will Wonders Never Cease?)
March 24, 2009According to a recently released report by the MBA, (Mortgage Bankers Association) total commercial and multi-family mortgage debt was actually increasing as-of the end of ’08. Commercial real estate loan balances ended 2008 at $3.5 trillion, up 5% over ’07.
Among the many reports and predictions of impending doom in commercial mortgages, this news seems counterintuitive. We are told that things are getting worse and lenders are not lending yet commercial mortgages increase more than $160 billion year over year.
Much of the increase is in the “commercial / industrial” category. These are business loans with a commercial real estate component.
Who’s lending all this money and holding all this paper? Commercial banks own 44%, 21% is tied up in various forms of CDOs (collateralized debt obligations), life insurance companies own about 9% and other savings institutions are in for 5.5%
Detail orientated readers can view the entire MBA report here.
Commercial Mortgage Loans; Private and Institutionally Funded – Loans From $1MM+ for Purchase and Refinance of Commercial Real estate – MasterPlan Capital LLC – Easy Application – Fast Professional Service
Q&A With UCLA Economist, Christopher Thorberg; The Man Who Predicted The Housing Bubble Answers Questions About Economy
March 13, 2009multifamilyexecutive.com has published an interview with Christopher Thornberg, one of the few economist to warn of the empending housing bubble. The article, by Jerry Ascierto, is originally from Apartment Finance Today. Mr. Thornberg claims that most are overly pessimistic right now. Check it out, its a short read worth your time.
MasterPlan Capital LLC offers private and institutionally funded commercial mortgae loans from $1MM+ for the purchase or refinance of all types of commercial real estate. Click here to apply now.
Commercial Mortgage Loans – New Low Rates Mean Opportunity for Qualified Borrowers
March 11, 2009
The current credit environment remains very challenging for commercial real estate property owners and investors. The state of the economy and the commercial mortgage backed securities (CMBS) market has prompted lenders to tighten standards and be more selective in deciding which deals they will underwrite. But in the midst of this credit crunch, opportunity has emerged for good credit borrowers with quality properties to finance.
Interest rates on commercial mortgages are lower than they have been in a very long time. Loan rates are set based on established interest indexes such as the 10 year US Treasury Bond yield or the 30 day LIBOR. World-wide demand for secure fixed income investments has driven bond rates down, consequently rates lenders charge for their mortgage products are also lower.
Lending parameters have been narrowed and fewer buildings and borrowers can qualify for the most attractive loan programs but for those that do qualify, today’s rates offer a unique opportunity to lock in very favorable financing for as-many-as 10 years into the future.
For instance, our firm is now able to offer 5, 7 & 10 year fixed rates starting at 5.5% to our best credit clients who are buying or refinancing stabilized income producing commercial property. (Rates are subject to change with market and other factors)
Often, loans are amortized over 25 years to keep payments low.
Property types such-as warehouses, retail centers, office buildings, self-storage facilities all qualify for low rate loans. And, thanks to unprecedented support from the Government’s two big lenders, Fannie Mae and Freddie Mac, there is absolutely no lack of liquidity in the multi-family (apartment) sector. Fannie and Freddie increased their apartment lending by more than 65% (year-over-year) and there are hundreds of billions of dollars available to finance apartment buildings.
To be approved borrowers and deal sponsors will have to show that they are sound financially and will need credit scores above 640. Likewise, buildings will need to be well maintained and produce sufficient positive cash flow. Loans will be fully underwritten and will require full documentation. In short; the best commercial mortgage loans are reserved for the best borrowers.
A poor economy and a weak credit market make for a challenging business environment. However, property owners and commercial real estate investors who have maintained a good credit rating and sound finances will find opportunities (like historically low rates) to match the challenges.
MasterPlan Capital LLC – Commercial Mortgage Loans – Simple, 1 Page Application – Quick Answers – Professional Service – Apartments, Office, Retail, Hospitality, Warehouses, Self-Storage – Purchase & Refinance – Institutionally Funded or Private Lending
Apartment Owners: Little Tax Tips Can Save Big Dollars
March 9, 2009One little tax tip can save an apartment owner big bucks. If landlords are not following the “Crucial Tax Tips” series over at the American Apartment Owners Association (AAOA) Blog then they should be.
MasterPlan Capital provides private and institutionally funded commercial mortgage loans for apartment building owners and investors. We are proud to be members of the AAOA.
Commercial Mortgage Loan Blog 