How to Raise Debt for a Real Estate Project
Episode description
We’ve talked about finding deals, sourcing deals, putting a pitch deck together, raising money, and all that stuff — but we haven’t yet talked about how to go about raising debt for a real estate project.
So today, we’re going to outline how to get debt from the more conventional (or traditional) sources. We’ll be covering: seller financing, regional banks, agencies that are representing Fannie and Freddie, and large commercial mortgage-backed security loans.
Pull up a chair and join us for this real estate-centered conversation on raising debt!
Key Takeaways:
[:12] Reading our favorite funny review from the last couple of weeks!
[1:45] About today’s episode.
[2:25] The first step to raising debt for a real estate project: obtaining a loan.
[8:11] If you’re just looking to borrow money for a deal, how much should you care about the structure of the loan?
[10:16] What information is a balance sheet lender or regional lender going to need to know in order to make a decision about whether or not they’re going to lend you money?
[14:24] So which loan should you take — an agency loan or a CMBS?
[18:18] How do you know if you’re getting a CMBS loan? And what do these types of lenders look like?
[19:32] How big does a deal have to be to qualify for a CMBS loan?
[20:05] Where do the big costs come in with a CMBS loan?
[21:31] Summarizing the four sources of debt mentioned in this week’s episode and giving some final, additional pieces of information.
[23:04] In conclusion: our take on what the best options are.
Mentioned in this Episode:
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