All Forum Posts by: John Bianco

So your choices are:

A. Interest Rate - 5.50% | Underwriting/Closing - 0.50%

B. Interest Rate - 4.30% | Underwriting/Closing - 2.00%

Am I understanding that correctly? If so, saving 1.20% in annual debt service, will make up for the additional 1.50% paid at closing.

It depends a lot on the property type and your plan with the building.

For example, for a typical multifamily building in NYC, you might gets 5+5, 7+5 or a 10 year quote over a 30 year amortization (the '+' meaning that your initial term of 5 or 7 years is at a fixed interest rate and after that initial term is over, you have the ability to exercise an option to either fix or float the rate for an additional 5 years).

Tell me more specifically about the asset and I may be able to point you in the right direction!

@Brian Zaug

The new laws will be rolled back to some extent soon enough. NYC does not realize that they have now given landlords ZERO incentive to put money into the units for repairs/renovations. They only good thing that came out of this is for duct tape companies, sales will go through the roof!

But in all seriousness, they’re trying to make up for the many years landlords have been able to increase rents to outstanding prices. This is quite a bit of overcompensation though...need to find a happy medium.

@Aviv Berkovitch

Messaged you

@Aviv Berkovitch what kind of properties are they?

@Eli M. Provide some more details on the deal!

@Aubrey Cook

Let’s call it 25% down (80% LTC is a stretch, 75% is pretty standard).

That means $750k loan. You’d have to then ballpark interest rate/amortization based on asset type and location.

For arguments sake, let's say 4.5% on a 30 year amortization. That means your annual debt service will be $45,602. Now apply a 1.25x DSCR. That means your NOI must be greater than $57,003

So to answer your question, yes, the bank is interested in seeing your net operating income.

I’m not sure I understand the next question entirely. Yes, you can take out a mortgage on a property you own free and clear but no, income from other properties will not be used to underwrite that property. If you’re not going to cross-collateralize, the bank is not going to underwrite your income from other investments.

In this scenario, is the property you own free and clear operating at a loss? If so, why would you want to take debt on a property that cannot support it?

Disclaimer: My answers are only speaking to commercial real estate. I’m not experienced in residential.

@Kelly Bauserman portfolio loan no doubt. Message me if you’re still looking at this deal.

@Jeremy Willis why limit yourself to private lenders?

Hi Ray, hopefully you already closed this transaction by now but if not, shoot me a message. I can absolutely help you source the most competitive co-op loans in NYC. My team has approximately $19 million in co-op loans currently in progress and another $100million+ spread throughout other teams at the firm.