Negotiating Financing terms
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.
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.
+103 | How are developers still building? | 33 | 8h | |
+39 | HELP I am Bored-BB CRE Debt AM | 31 | 1d | |
+38 | Specializing in Office Long-Term - Prospects | 13 | 2d | |
+31 | Letter of Credit in lieu of Personal Guaranty | 20 | 21h | |
+30 | Masters in Real Estate | 10 | 1d | |
+22 | Why does rent abatement exist? | 12 | 2d | |
+21 | Retail Syndicator Success Stories | 9 | 9h | |
+15 | Masters in Real Estate: Europe | 10 | 4d | |
+12 | Multi Development Assumptions & Ratios | 6 | 4d | |
+12 | Multifamily Operational Efficiencies | 2 | 4d |
Career Resources
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.
Quia dignissimos rerum a qui atque molestiae animi. Accusamus est veritatis numquam ipsam. Soluta repellat sed unde. Corrupti aut placeat sunt. Fuga voluptate sint dolorum ut earum pariatur. Quia repellat fugiat recusandae aut reprehenderit.
Vitae repellat dolorem vel ea id ad. Eaque unde assumenda distinctio. Quo aut ut voluptatem dolore.
Aliquid consequatur est sint eos est soluta minus. Labore velit vel vel qui quos itaque. Sunt sit totam cumque soluta velit. Iusto eius dolorem voluptatem sed. Non rerum rerum modi voluptatem expedita. Sunt voluptates voluptatem accusamus aut labore aliquam.
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...