All Forum Posts by: Eric Schleif

Scott, I just read your profile so i'm guessing the asset is commercial/office so forget what I said about 80% LTV. I'd imagine banks are going to be skittish on the seller 2nd, but no harm in trying. We got around this same issue on a large commercial deal down in Memphis by having the seller agree to take a preferred equity position instead of carry a 2nd mortgage. Good luck.

Possible, yes. Ideal, no. Bridge lenders would look at this more openly than a traditional bank. The seller's second would have to be very soft. Your payments on the sellers second will decrease your cash flow and lower your proceeds if the deal is tight. What's the asset type? If its a multi-family deal there is 80% LTV money out there. You could avoid the seller financing all together.

You should speak with lenders or a broker about this deal. I would start with the current lender. A lot depends on what happened with your bankruptcy, your current financial position, and the asset itself. It's not clear what type of asset you have from your post. You mention it's a commercial asset and that you rent out some units as a vacation rental. Since you are not cashing out and looking at a low leverage deal I would think you should be able to refi this.

What type and size deals are you looking at in LA?

Mike Dymski gotcha. FYI....Freddie SBL is for multi-family with 5+ units.

@Mike Dymski Are you buying individual condos/coops in a building/complex? I am fairly certain the Freddie SBL program won't finance that type of asset. 

@Mike Dymski Yeah you get better pricing on loans +$5MM. There are enough bridge guys out there lending less than that but at higher rates. I'm guessing your deal is in like the $1MM to $2MM range. 

@Mike Dymski I can't see a local bank offering you a bridge to agency perm, but I am not an expert in your local market and it can't hurt to ask. Yes, a commercial mortgage broker would be able at assess if you can get a agency lender to offer a bridge to perm and open that door. But like I said in my original post, it depends heavily on the deal and the borrower. Smaller deals are harder to get lenders interested in offering a bridge to agency. Most of the lenders really don't make much money on the bridge deal in this scenario as they are using it as a tool to drive agency production. 

@Mike Dymski Agency loans are great in many markets, but I wouldn't say in all markets. Bank loans routinely offer more competitive rates and terms in the larger markets like NYC metro, parts of CA, etc. There are also some regional banks that offering aggressive terms in secondary markets that are beating the agency quotes. When I was talking about a bridge to agency it would be through the same lender that is offering the Freddie/Fannie/HUD perm. They'll offer very attractive bridge rates, with one caveat...They'll have a large exit fee of something along the lines of 3 points that is waived only if use them for the perm takeout to agency. That way the lender won't get burned.

@Lawrence L. I'm assuming your questions regarding bridge and agency loans has been answered.

Best of luck to the both of you.

Mike Dymski there are lenders out there who will bridge you to an agency loan. It really depends on the deal and borrower.