Posts Tagged ‘Multi-Family’

New Options for Multi-Family (Apartment Building) Loans – MasterPlan Capital’s Mid-Sized Multi-Family Loan

January 23, 2013

“Sweet Spot” Mid-Sized Multi-Family lending (Apartment Buildings with 6 or more units) program:

Loan Balance: $5mm-$10mm

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Click our Logo to Apply

LTV:                      to 75%

Rate:                      3.75%-5.75%*

Area:                      Eastern US

Time to Close:     45 Days (+/-)

*Rates as-of Jan ’13. Rates can change without notice due to market and other factors. Fully underwritten, full recourse lending. Prepayment (step-down) fees may apply. Points of between 0-1.5 may apply. Deposit may be required upon formal loan application.

April is Apartment Lending Month at MasterPlan Capital, Multi-Family Mortgage Loans Starting at 3.5% to 80% LTV

March 31, 2012

MasterPlan’s Mid Market Apartment Program: Multi-Family (Apartment) Commercial Mortgage Loans from MasterPlan Capital

Loan Size: $5mm-$25mm

LTV: 60%-80% (Max)

DSCR: 1.2X

Rate: 3.5%-5.5%

Term: 3, 5, 7, 10 or 15

Amortization: 15, 20, or 25

Points: 0-2

Close: 50-75 Days

Underwriting: Full

Apply online at www.masterplancapital.com/masterplanapplication.html ,  call 1-800-727-5140 or email info@masterplancapital.com

MasterPlan Capital Rolls out new CMBS Commercial Mortgage Platform for Multi-Family (apartment building) Loans.

December 21, 2010

MasterPlan 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.

6 Top Rent Boosting Tips For Your Property

December 4, 2010

Managers can easily fall into the trap that the rent is the rent and miss great opportunities to drive additional revenue from a property.

Let’s take a few minutes and brainstorm the possibilities.

With imagination and focus, the possibilities could be endless. –READ ALL 6 TIPS AT THE AAOA BLOG–

Commercial Mortgage Loans, Credit Tenant Lease (CTL) Financing, Equity Financing, Online.  Simple, 1 Page Commercial Mortgage Application. Quick Answers. Professional Service–MasterPlan Capital LLC

AAOA Warns Apartment Owners to Avoid Common Mistakes

January 22, 2010

Multi-family (apartment) owners; protect your investment! Avoid these 10 common mistakes that landlords make.   (Thanks to the AAOA for the tips)

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Commercial Mortgage Lender; MasterPlan Capital LLC

Yes You Can Get a Commercial Mortgage Loan From a Hedge Fund – Here’s How – A Wall Street Pro Explains

November 6, 2009

Most investors know that hedge funds make commercial mortgage loans, but few know how to approach a fund or exactly how secure an approval.

The first and most important thing to remember about hedge fund managers is that they have a Wall Street mentality; they are stock traders at heart. A trader wants to get into a trade at the right price, see results quickly and exit the trade at a profit. Hedge funds that commit capital to commercial real estate lending are no different. They want to lend at a low LTV (loan-to-value) and get out quickly. Profit takes the form of interest and points, but the general mindset of the decision maker on the loan committee is no different from a member of the stock selection committee.

It is imperative that you present your loan as an opportunity for them to make good money, quickly and safely, not as a way for you to reach your goals. Do not talk about your problems; money managers will be empathetic but will not be sympathetic. Emphasize the strong points of your deal, your past successes and your strengths as the deal’s sponsor. Keep the conversation optimistic. We all know it’s tough out-there; sophisticated hedge funds want to fund people who are capable of overcoming obstacles.

The large majority of private lenders, including hedge funds and private equity firms are equity lenders. Hard equity in the real estate is the lenders downside risk protection. This is extremely important to big money hedge funds because they generally do not recover their capital by selling their loans to the government or to the bond market. Hedge funds are usually “portfolio lenders”, meaning they use their own money to finance deals and hold the mortgage paper until it matures. Do not expect any loan offers from private funds to come in over 65% LTV (loan-to-value). If your deal does not meet this criterion, be prepared to inject more of your own cash or find a partner who can bring money to the closing table.

Your exit strategy is a paramount concern to hedge fund managers. Funds make “bridge” loans; short term, interim financing. They will need to know how you will pay them back and will need to be convinced that your exit will work. You must have a detailed, viable and credible exit strategy worked out before you approach a private funding source. It helps a-lot if you have an “in”. For good or for ill, Wall Street works like a private club. They have their own language, their own traditions and their own ceremony’s. If you are not member of the club getting their attention is much more difficult. For those on the outside of this specialized niche, it may be necessary to retain the services of a professional intermediary with Wall Street experience to get you in the door.

The banks, insurance companies and brokers are not lending like they used to. For many good quality commercial mortgage loans, private money is the only-game-in-town. Hedge funds are flush with cash and are hungry to make deals. If a real estate investor can develop a relationship with these unique lenders they will enjoy a seemingly endless source of funds.
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MasterPlan Capital LLCCommercial Mortgage Lender, Private and Institutionally Funded Commercial Mortgages- Equity Financing – Asset Management – EZ Online Commercial Mortgage Application – Quick Answers – Close in 10 Days – The author, Glenn Fydenkevez, is President of MasterPlan Capital, he has more than 20 years experience in the financial industry and has been a officer at one of the world’s largest investment banks.

Commercial Mortgage Lenders – Government Agencies Dominate Multi-Family (Apartment) Mortgage Sector

October 23, 2009

There 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 Lender; MasterPlan Capital LLC – EZ Online Application – Fast Response

Commercial Mortgage Loans; Easy to Apply, Fast, Professional Service

March 29, 2009
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Commercial Mortgage Loans Went Up in ’08 (Will Wonders Never Cease?)

March 24, 2009

According 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 LLCEasy Application – Fast Professional Service

Q&A With UCLA Economist, Christopher Thorberg; The Man Who Predicted The Housing Bubble Answers Questions About Economy

March 13, 2009

multifamilyexecutive.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.