Attorney · Katy, TX · Member since 2014 · 397 posts · 215 votes
I wanted to ask if anyone has had experience being a balance sheet partner for multifamily sponsors (or other investors) to obtain agency debt (Fannie, Freddie, etc.) and what the experience was like, etc. Thanks.
Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
5y
Just know that there is risk to you even if it is a non-recourse loan, so I would never do it unless I was totally comfortable with the lead sponsor(s).
Just know that there is risk to you even if it is a non-recourse loan, so I would never do it unless I was totally comfortable with the lead sponsor(s).
Just know that there is risk to you even if it is a non-recourse loan, so I would never do it unless I was totally comfortable with the lead sponsor(s).
That's not quite true. There are other situations beyond just fraud that could could cause the loan to go recourse. But beyond that, if the property does not perform there is risk for your ability to get another agency loan. The agencies are looking real hard right now at all the deals. For a deal I'm closing next week, Freddie asked me financial questions about 3 LP investments I'm in. Not deals where I am the deal sponsor but deals where I only have $25k-75k invested and I don't even have any control of why the numbers might not be to their liking. That's how they are right now.