Multifamily investing - distressed debt assumptions and negotiation
Hi all - working through a case study for a distressed multi-family acquisition. The case asks me to assume the debt as a new investor and asks for me to propose new terms for the existing debt, which is due shortly after the potential acquisition. My question is what terms are typically appropriate to re-negotiate in this situation - would lenders accept an additional say 15 year-term, with I/O period and a lowered interest rate? Thanks so much for help - haven't worked through a distressed deal before so any help provided is much appreciated!
bump
U working on something similar?
No way a lender gives 15 years additional term at a reduced rate. A few years max as they want you off the book eventually, or want the ability to renegotiate at that time.
Gotcha - so they might give you a few more years to repay the loan?
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