I have a coastal value-add MF project in escrow in San Diego. I've got some great bridge loan quotes at 60% LTC in the low 5% range. My sponsors are studs with 7000 renovated units under their belt. Equity appears to be in hand as well. To my surprise, my sponsor doesn't like loan quote. The recourse provision is only during construction. Once stabilized it's non-recourse (12mo +/-).
Are there any banks out there doing $6mil/60ltc bridge loans in CA that are non-recourse with good rates? I see quotes out there in the 7-8% range and that's too high.
Do the mod-rehab program with Fannie/Freddie, if you don’t convert to perm afterward, you need to pay a fee
I got a call into my agency guy. He's not sure if it allows a full gut of all units day 1, which is what we're doing. I'll know more in an hour. Thanks for the input. Still on the hunt.
Coincidentally I’m working on one of these type of deals. We should catch up offline. Curious to hear what you found so far. I’ve got some notes/lenders I can share from my end as well.
@Merchant_of_Debt" This guy hooks it up
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PM me. I could get you L+320-380 on this all day long.
Why are they so opposed to recourse during construction? You mentioned that it burns off once the asset stabilizes? That sounds to me like they don’t believe in the deal.
PM me - my shop goes up to 80% LTC at L+300-325 for generallly cash flowing multi family assets before renovations
Can look for companies like toorak, corevest, finance of America. LTC is relatively low to ask for full recourse so I get why he doesnt like it
PM me - a bunch of groups in the space that could be competitive and offer TRUE NR debt.
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