Emporium TPO’s Post

Our hard money loans come with 6 or 12-month terms. You'll make interest-only payments until you refinance or sell the property. Need to extend after 6 months? Just pay 3 points of origination for another 6-month extension. Remember, you're only making interest payments throughout the loan term. #HardMoneyLoans #InterestOnly #LoanExtension #InvestmentStrategy

Thousands of loans will reach maturity in 2024 and 2025 across all asset classes, and many owners will find that they are coming up short on proceeds at refinance. If you are concerned that this may be a problem for a maturity that you are facing, it is best to plan ahead. We can help with senior and supplemental debt options that can help you get past the current interest rate challenges and on to a brighter future ahead. Schedule a call to discuss options at Calendly.com/BMFG.

Part 1 - Minimum repayment is making the bank rich and you poor. The reason for this is that interest is calculated daily, not yearly. On a $800,000 loan against a $1M property at 6.5% over 30 years, you’ll be paying $1,020,356 in interest ALONE. With that payment, you didn’t pay 6.5% interest, you paid 100% interest to purchase that property! Reducing your loan term is important to save you more money over the life of the loan and while this may not be practical for most immediately as the repayments will go up, you can refinance to a lender offering 0.5% less and make the same repayments as you do currently. By doing this, you’ll save close to 4 years on your loan term and $139,300 in interest .. back in your pocket. There is situation where you would just make minimum repayment. For that, like and follow for part 2!

There are $61B in outstanding floating rate agency loans through Freddie. Now here are some shocking stats that were discussed (as per CRE Analyst): ~ 21% or $13B of those $61B of loans are currently on the federal watch list ~ Only 1% of those are in special servicing right now ~ Many of those loans have a DSCR below the current standards That last stat is VERY worrying, since sponsors will likely have to come up with plenty of equity just to cover the refinance. Now if the sponsor does not believe in the deal enough long term to pay in to cover the DSCR, what do you think is about to happen? Reach out to myself or Clark Finney with our debt team to discuss the debt markets.

➡️➡️ Refinance Your Bridging Loan - Now Available ⬅️⬅️ See below Refinancing a bridging loan allows you to replace existing finance secured against an asset. Investors may seek out this options where certain plans have fallen through and more time is required. For instance, your current finance may have run out before you had a chance to complete your project, or your original exit strategy is no longer viable. You may also seek out refinance if it results in cheaper rates or more favourable terms. What’s more, you may be able to refinance more than once should you need to raise additional funds for expanded business or property plans. What’s important for refinance bridging loans and indeed, for all our products, is having an exit strategy in place. DM for more info or to get some info on your options. #bridgingfinance #bridgeloans #Refinance #bridgelending

We just quoted a no-income verification cash-out refinance on a single-family investment home at 7.625%. The appraised value was $300,000 and a 70% loan to value. The loan amount was $210,000. The pre-payment penalty was a 5-year pre-pay. The APR was 7.98%. 30-year fixed rate loan. The borrower had a 740 FICO. Interest rates on a 3-year pre-pay were 7.875% Interest rates on a 2-year pre-pay were 8.125%

The idea of refinancing a commercial loans might cause us to wince in the current interest rate environment. The good news is there are more options than you might imagine. If you're up against a refinance decision, drop us a note. In the meantime, check out this article, written in 2022, but still very relevant as we enter 2024. https://lnkd.in/ejP8FD7p

If you are looking at borrowing money for a house purchase or refinance, but ATO debt is hampering your efforts, there may be options available to help in these scenarios. Just drop us a line if this is something you would like to know more about or if I can assist.

Did your investment property go up in value? Got a good interest rate on your first loan, making it not worthwhile to refinance for a cashout? (stuck with your equity in your property?) A second lien might be your answer. We offer second-lien options, full doc, and DSCR. Reach out to teamzf@themintcapital.com to get started. #Mortgagewithease #themintcapital #Secondlien #DSCR

In the past year, we've been assisting CMBS borrowers with extending loan maturities. Lenders are open to collaboration based on factors such as asset class, property performance, and location. They're particularly interested in seeing evidence that, as an investor, you've made efforts to refinance the property without success. However, perfecting these requests requires time. If your CMBS loan is maturing in 2024 or early 2025, reach out to discuss your options. Partnering with a loan workout team could help you save both time and money. #CMBS #Loanworkouts #maturityextension