RCRE - What to Know About Supplemental Loans

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Jake & Gino

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4.9 • 842 Ratings

🗓️ 25 November 2020

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

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Summary

Mike Taravella and Will Coleman explain what you need to know about supplemental loans. Key Information: Before underwriting your financing assumptions, speak to the lender of the senior loan to determine what terms and conditions are possible for the new loan. Lenders require at least 12 months to pass before you are eligible to apply for a supplemental loan. For supplemental loans, most lenders will not exceed the LTV on the original loan. Ask your lender whether this is something they would consider. Some banks will do this if they feel comfortable with the sponsor. Minimum Supplemental Loan Amounts: Fannie Mae: $500,000 Freddie Mac: $1,000,000 Community Banks: $750,000 Regular loans cost the same as supplemental loans to service: legal fees, third party reports, origination fees etc,. Fannie Mae and Freddie Mac require the same principal and interest reserves for supplemental loans as they do for regular loans. Expert Pro Tip: “Trust but verify with your lender” Contact Information: will@randcre.com miket@randcre.com Randcapllc.com info@randcre.com To register to invest with us: https://invest.randpartnersllc.com/invexp/accounts/login/ Rand CRE's Facebook: https://www.facebook.com/randcre Rand CRE's Linkedin: https://www.linkedin.com/company/randcre Rand CRE's Instagram: https://www.instagram.com/randcre

Transcript

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0:00.0	Welcome to the RANCRE show, commercial real estate with no stone left unturned.
0:10.0	Hey everyone, welcome to the RANCRI show.
0:12.9	I'm your host Mike Taravello with the man, the myth, the legend of financing.
0:18.3	Will Coleman.
0:18.9	Will, how are you doing today?
0:20.4	Well, Mike, just running the marathon one step at a time.
0:23.7	What do we have the, so we're having a follow-up to our previous podcast.
0:28.2	Today, we're here to talk about supplemental loans.
0:31.2	So, Will, what are, what is the first thing people need to be aware of when it comes to the supplemental loan?
0:37.2	So we could probably sum up this podcast in a couple sentences.
0:41.2	But we're not.
0:43.4	But the most important thing when doing a supplemental loan is the same as the assumption,
0:50.2	but it is to speak to the lender that did the senior loan.
0:56.3	So the lender that originated the original loan,
0:59.1	you need to speak to that lender and ask them about what possibilities,
1:04.3	what's realistic with the supplemental loan.
1:06.7	That is a must,
1:08.3	and I would reiterate doing that before you get the deal under contract.
1:12.3	Yeah, it's important to make sure you get it under contract because like when you talk to
1:16.3	Will about the financing, like when you talk to your investors, you want to have a concrete
1:20.2	plan of what is what you plan on doing, how do you plan on taking it down?
1:25.1	Because when we looked at loan assumptions, we've had a,
	...

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