ASK MIKE MONDAYS - Interest Only Needed? What you should exp...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Interest only can certainly help the cash-on-cash returns on your investment. If you are purchasing a broken property- deferred maintenance, bad management, bad occupancy; you need some type of payment relief during times of weak cash flow. Having an interest only period during the renovation is certainly typical for a BRIDGE type of loan. Banks typically don’t like to do lots of interest only…because the bank regulators don't like interest only. Most community banks on bridge loans will onl...

ASK MIKE MONDAYS: “Mike, what POSITIVE things are you seeing today in APARTMENTLAND?”

Nationwide Commercial Real Est... Nationwide Commercia... | 7 months ago

As you can imagine, with interest rates rising, many apartment investors have been pencils down. Investors are concerned with lower asset value & higher debt service. Is there any good news out there? What are some of the positive ideas that are occurring in apartment investing? Mike is starting to see some positive “green shoots.” Mike discusses some of those encouraging thoughts on what he is seeing in apartment investing. Listen to the guy that has acquired over 14,000 apartment units. Ar...

ASK MIKE MONDAYS - Michael, what should an ASSET MANAGER do?

oldcapitalpodcast oldcapitalpodcast | 4 years ago

An asset manager oversees the property on behalf of the investors. They report any financial or physical changes (good or bad) to the general partner. They help in managing a solution. When you own a small property (10-30 units) you are the ASSET MANAGER…. When you purchase a larger property or own more apartment communities, you may need to hire an asset manager. Remember, your job, as a general partner is to find more apartment purchase opportunities and find more equity. An asset manager wi...

ASK MIKE MONDAYS -What can I expect when a building catches on fire?

oldcapitalpodcast oldcapitalpodcast | 6 years ago

ASK MIKE MONDAYS - What’s the impact with rising interest rates?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Interest rates have been steadily rising over the last 6 months. Michael discusses the impact of what rising interest will have on underwriting apartment transactions.

ASK MIKE MONDAYS - Michael, can you define what KEY PRINCIPAL is?

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Michael discusses and defines the term: KEY PRINCIPAL and how it applies to commercial real estate lending. The lender makes the loan to the Borrower. The Borrower is not typically an individual; but typically a limited partnership. Generally, where the Borrower is a limited partnership, the general partners are the managers of the Partnership. Thus, individuals general partners are potential Key Principals. For any general partner of the Borrower which is an entity, the Lender must identify as ...

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Michael discusses and defines the term: KEY PRINCIPAL and how it applies to commercial real estate lending. The lender makes the loan to the Borrower. The Borrower is not typically an individual; but typically a limited partnership. Generally, where the Borrower is a limited partnership, the general partners are the managers of the Partnership. Thus, individuals general partners are potential Key Principals. For any general partner of the Borrower which is an entity, the Lender must identify as ...

ASK MIKE MONDAYS - What should I be aware of when applying for BANK financing?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Not all Lenders are the same; some Banks are not real estate lenders. Not all Lenders like Apartment loans Not all Lenders like older properties that need to be rehabbed and repositioned Not all Lenders like non-recourse loans; most will not even offer non-recourse loans Not all Lenders will like the part of town that you want to invest in. Not all Lenders will give you maximum leverage to acquire and rehab with your loan Not all Lenders will amortize apartment loans greater than 15 years Y...

fastexpert fastexpert | 9 months ago

Interest-only loans are a type of loan in which the borrower pays only the interest for some or all of the term, with the principal balance unchanged during the interest-only period. At the end of the interest-only term, the borrower must repay the entire principal balance in a lump sum. Most homebuyers won’t consider this type of loan because it often has a specific purpose, such as when flipping houses. In this article, we will discuss everything you need to know about interest-only loans so...

ASK MIKE MONDAYS - Michael, interest rates are incredibly low; should I lock in a long term fixed ra...

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Michael explains that todays low rate environment can benefit many apartment buyers with lower debt costs, BUT will exponentially increase the yield maintenance prepayment penalty costs for sellers. Lower rates may mean more loan assumptions in the future to avoid the yield maintenance cost.