Ep #80: Understanding and successfully navigating the world of CMBS loans - with Ann Hambly
Real Estate Investing for Cash Flow with Kevin Bupp
Kevin Bupp
4.9 • 675 Ratings
🗓️ 27 July 2015
⏱️ 42 minutes
🧾️ Download transcript
Summary
This week we're going to be speaking industry expert, Ann Hambly, who is the founder and CEO of 1st Service Solutions , a national service provider and consultancy firm to the commercial real estate industry who provide advice and solutions for anything ranging from the addition or removal of collateral on an existing CMBS loan, to the most complex loan restructure for all loan types.
And for those of you who might not know what a CMBS loan is here's a quick definition. A CMBS loan, also known as a commercial mortgage-backed security, is a type of fixed-income security that is collateralized by commercial real estate loans. Typically these loans are for commercial properties such as office buildings, hotels, malls, apartment buildings, factories, etc., but not single-family homes. CMBS make up about 2% of the total U.S. fixed income market.
In essence, CMBS are created when a bank takes a group of loans on its books, bundles them together, and sells them in securitized form as a series of bonds. Each series will typically be organized in "tranches" from the senior - or highest-rated, lowest-risk issue - to the highest-risk, lowest-rated issue. The senior issue is first in line to receive principal and interest payments, while the most junior issues will be the first to take a loss if a borrower defaults. Investors choose which issue they invest in based on their desired yield and capacity for risk.
Today we're going to speak about how Ann's company can help investors navigate the tricky and often times complex CMBS loan process as well as discuss some of the opportunities that might exist from maturing CMBS loans that were created back during the 2005-2008 real estate run-up and how her company can help you capitalize on some of these "soon-to-be" distressed opportunities.
Here’s a few things you’ll learn in our interview with Ann today:
- What a CMBS loan is
- What role 1st service solutions plays in the CMBS market and the services they provide to real estate investors
- How Ann was able to grow her company during one of the worst real estate markets in history which was 2008
- The opportunity that exists with the $100+ billion of maturing CMBS loans and how you can go about uncovering those that might be distressed
- What defeasance means when it comes to CMBS loans
- The benefits of a CMBS loan and how they typically offer much more attractive terms than conventional commercial loans which can include longer amortization, lower rates, non-recourse vs. recourse bank loans, and 10 year balloons instead of 5 or 7 that you have with commercial loans.
- The number one marketing strategy which she feels is responsible for the great success her company has experienced and how you can apply this same strategy to your real estate business.
- How to get a free 1 hour phone consultation with Ann.
- And much more
Recommended Resources:
- Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
- Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
- Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S
- Learn more about today's guest by http://www.1stsss.com
Transcript
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| 0:00.0 | You've been searching for the best way to generate passive income in your life |
| 0:06.5 | and heard that real estate is a great way to do it. |
| 0:09.2 | But you're tired of all the so-called gurus who are all talk and no substance. |
| 0:15.3 | Get ready to celebrate because Kevin Buck has spent 14 years successfully making it happen. |
| 0:21.8 | This is the Real Estate Investing for Cash Flow podcast. |
| 0:25.2 | Now, here's Kevin Buck. |
| 0:30.0 | Hey guys, Kevin Bubp here with episode number 80 of the Real Estate Investing for Cashflow |
| 0:34.7 | Podcast, or Mitch is to help you build and maintain |
| 0:37.7 | massive amounts of cash flow through income producing real estate investments. |
| 0:42.1 | And this week, we're going to be speaking with industry expert Ann Hambly, who is the founder |
| 0:46.9 | and CEO of First Service Solutions, which is a national service provider and consultancy firm |
| 0:52.6 | to the commercial real estate industry who |
| 0:54.9 | provide advice and solutions for anything ranging from the addition or removal of collateral |
| 0:59.8 | on an existing CMBS loan to the most complex loan restructure for all commercial loan types. |
| 1:06.0 | And for those of you who might not know what a CMBS loan is, here's a real quick definition |
| 1:10.6 | for you. A CMBS loan, also here's a real quick definition for you. |
| 1:11.1 | A CMBS loan, also known as a commercial mortgage-backed security, is a type of fixed income |
| 1:16.9 | security that is collateralized by commercial real estate loans. |
| 1:20.7 | And typically these loans are for commercial properties such as office buildings, hotels, |
| 1:25.7 | malls, apartment buildings, mobile home parks, factories, |
| 1:29.1 | etc. |
| 1:29.7 | But not for single-family homes. |
... |
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