Welcome to the RANCRE show, commercial real estate with no stone left unturned.

Hey everyone, Mike Tarvella here. Welcome to the RANDCRI show. And today we're going to discuss

loans, but more in particular loans of less than a million dollars. We've seen this trend continuing

and people asking a lot of questions online, so we figured we'd do a quick, shorter episode

to make sure we hit on this point so we can help you and the investors out there tackle on

your next multifamily deal. So when you're generally looking at small loans of under a million dollars,

the assumption is generally you could be newer in the space, you'd be targeting smaller assets,

greater than five to 20 units, we'll say, depending on the area of the country, you never want to

assume. But generally, these loans are for newer assets or operators

potentially in the space. And so the one thing I wanted to hit on first is agencies aren't

quite looking at these small of loans. So when you're hearing these longer, you know, with agencies,

you're getting a 30-year amortization, more interest rate, more competitive, uh, interest only.

It's super important to make sure that you, you know, I don't want to say eliminate it,

but you have to find different creative ways to get that because the agencies are generally

Fannie Mae and Freddie Mac are focusing

on larger loan sizes because the loan market has become very, very competitive. And so they're

targeting the larger deals. They're also become the lenders are becoming much more stringent.

I think instead of just kind of checking the box and saying, oh, here's

everything. They're asking a ton of questions, doing a ton of due diligence, because with COVID-19,

collections are in question. So you definitely need to make sure you have your 30, 60, and 90-day

delinquency report. But just more importantly, is making sure that the financials are good in trending upwards,

our income increasing, is occupancy increasing.

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