How do you typically go about negotiating terms with lenders (IR, loan term/amount, fees, prepayment penalties, etc.)?
What are things you almost always negotiate?
Very broad but any insight would be appreciated.
| +43 | What Is Your Backup Plan? | 20 | 4h |
| +39 | Where are free agents signing? | 21 | 11h |
| +35 | AvalonBay Equity Residential Merger discussion | 16 | 8h |
| +34 | Future of Real Estate | 9 | 13h |
| +31 | Laughable Job Posting | 12 | 7h |
| +16 | Extremely Slow Ramp Up | 1 | 1d |
| +14 | In RE, what is the ONE software tool you couldn’t survive without? | 5 | 1d |
| +10 | Dynex | 5 | 18h |
| +9 | Portfolio Management strategy/transaction exposure on the analyst/associate level? | 1 | 18h |
| +9 | Development Budget: use RENTABLE or GROSS BUILDABLE sf? | 3 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Following
Depends on what you're looking for and your strength as a sponsor.
Example, are you looking for just some short term financing for a value-add deal you want to exit in 2-3 years? If so, then negotiate a limited to zero prepayment penalty.
Are you planning to hold for a very long time? If so, then focus on the interest rate.
It depends on what your strategy is that will determine what you prefer.
More importantly, your ability to even negotiate is going to come down to your strength as a borrower and the strength of the deal.
A couple items I would always negotiate is actually the guaranty if you can. I'd rather pay a bit more on fees but get a good night's sleep knowing I can avoid personal liability. Again that's my preference.
Corrupti est in qui id non consectetur. Unde ut in suscipit et. Sit sit voluptates amet molestiae reprehenderit repellat quis.
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...