Loans on Sale

Certain Lenders will have "sales" where they periodically have specific internal reasons to temporarily offer loans on very favorable terms. One such lender is offering full leverage recourse loans up to $15 million at the following ultra-low rates for loans closing by the end of July:

• 5-year fixed-rate: 2.65%
• 7-year fixed-rate: 2.95%
• 10-year fixed-rate: 3.25

Bridge as Permanent Loans

Multifamily borrowers are forgoing agency loans in favor of bridge loans given materially higher loan amounts for bridge loans with similar interest rates. Agency loan sizing is being negatively impacted by weak historical property performance through the pandemic while bridge lenders are able to lend based on the projected performance in the future. Such bridge loans are typically limited to loans of at least $5 million, but the most favorable terms are available for loans of $15 million or higher.

CMBS Loans

CMBS lenders can provide 65% LTV loans for multifamily properties at a mid-3% interest rate with full-term interest only. It's a great way to maximize cash-on-cash returns! CMBS lenders are also open to other property types but may be cautious with respect to those hard-hit by COVID.

Land Loans Challenging

Land loans are currently relatively challenging. Many prior land lenders lack the capacity to take on more, while those that have capacity may have concerns about how and when they'll get paid off, citing concerns about permitting delays due to COVID, spiking construction costs, and the uncertainty regarding the strength of the rental and sales markets. That said, there are still land loans available, but a wider net may need to be cast to find the right lender.

Commercial real estate lending is a hot topic, with multifamily and housing and manufacturing getting most of the attention right now

These sectors aren't struggling to receive credit, but they are reporting that more questions are being asked during the application and approval processes and leasing requirements are increasing a bit.

Will your next project be affected by any of these due diligence items? Click below to read the full article.

A survey by anonymous professional network Blind asked more than 3,000 employees on the platform if they would rather permanently work from home or get the extra cash, and 64% took work from home over the raise.

The pandemic accelerated remote work trends, and now that employees have had the chance to take advantage of a fully remote or even a hybrid work model, many of them don't want to go back.

Click the link below to read the full article.