All Forum Posts by: Brian C.

What do you mean not small balance? Both Freddie SBL and Fannie small loan multifamily programs have minimum loan balance of $1mm. I know Freddie is capped at $5mm and it may be the same for Fannie's program.

Thanks William.  

Is there a standard form similar to the "Multistate 1-4 Family Rider" for commercial properties such as multifamily and office parks that would allow a lender to collect rents in the event of default?

The bigger guys do some hedging and have arrangements with the gas suppliers that can mitigate some risk. Of course you would most likely be paying a premium to hedge as well. 

My opinion still holds true. I've spoken with so many borrowers who were so confident of their investment at origination only to be left holding the bag when they have so many factors they can't control.  Don't forget that with more gas storage, the more you are at higher risk of cost fluctuations. While this can help you in rising markets it's also a double edge sword when you buy an entire load and the price drops 15 cents in 2 days while your competitor down the road was able to wait and can now charge less.  Sure inside sales are key, I agree with that. In SC, retails make around 6% on lotto and as I mentioned most grocery and other items have about a 25% markup. Theft and employee theft is HUGE too in that industry. ughhhh I just shutter thinking about it. 

I have a lot of experience underwriting and servicing these types of deals. Delinquencies are through the roof.  I would personally would never touch it. There are so many risks and all it takes is a big player (sheetz/QT) to move in next door or down the street to wash away every merit from historical financials.  There are so many other factors too. Unless you are a big player you may make only a couple pennies per gallon after CC fees on the gas. Your inside sales may have  25% margin but you will have a lot of stale inventory too.