Anyone have with Freddie SBL loans?
I'm a doing a small personal deal and they were the most competitive. FM legal counsel called and the attorney said "I'm sending you loan docs...they're pretty much non-negotiable." I thought this was a bit strange and was wondering if anyone else has come across this loan product? Since the attorney did use the word "pretty much", I'm assuming there's some wiggle room somewhere?
Hi Doekim, just trying to help:
I hope those threads give you a bit more insight.
I’m buying a 64 unit deal with some partners and financing with Freddie SBL and step down prepay at 80% LTV. It’s a great program, especially if you’re an investor with little or no experience owning or investing in multifamily. PM me if you’d like to discuss further...
What is the loan term? and fixed rate?
5yr IO @ 3.9%
What incentive would Freddie have to negotiate on the SBL loan docs? Think of it from their perspective. They're offering financing that is superior to the rest of the market for borrowers who would generally struggle to acquire traditional debt financing from commercial banks. In addition, they have thousands---maybe tens of thousands--of these deals in the servicing portfolio. Each deal is basically a rounding error in their portfolio (even more so than their regular deals). How difficult would it be for them to provide bespoked servicing for each tiny, miniscule, irrelevant SBL transaction? They can probably barely keep their head above water as it is on the servicing side. Bespoked SBL loan docs would cause a rebellion among the servicing department.
From FM's perspective, if you don't like it then you can find financing somewhere else.
That's essentially what they said except counsel used the phrase "pretty much" so I thought there might be some slight room.
Facilis et autem provident vitae vel. Consequuntur consequatur esse quibusdam nulla qui nulla non placeat. Nostrum velit reiciendis dolorem quis maxime ratione nihil suscipit.
Enim numquam autem delectus eos aperiam. Rerum distinctio quam assumenda aspernatur aut dolor aut. Itaque officiis dolores incidunt nostrum autem placeat. Sunt totam error cum maiores dolor voluptatem nam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...