What is the Meaning of Refinancing?
Refinances in real estate is a great way to utilize and leverage built-up equity tied up in the property, as opposed to not having that equity work for you.
Refinances in real estate is a great way to utilize and leverage built-up equity tied up in the property, as opposed to not having that equity work for you.
In the world of lending, there are 2 types of loans available, each designed for different clients with different needs. They are either agency or non-agency loans. In this article, we will show you what the qualifications are, who regulates them and what the differences are between the two.
Non-recourse loans offer the safest financing option for multifamily real estate investing. Here’s how they work and how you can qualify for one.
A recourse loan is one where the security itself and any existing loan debt are both subject to personal liability for repayment by the borrower(s) or guarantor(s).
Unlike a traditional first lien position mortgage for a single-family dwelling, commercial multifamily properties have five or more units. We’ll explore what financing options are available.
Interest-only loans are adjustable rate mortgages designed to keep the monthly payment low. Interest-only loans have gained in popularity for several key reasons.
Both Fannie Mae and Freddie Mac are two agencies that were created by the United States government. They are both privately funded. They buy and sell mortgage-backed securities.
A recourse loan is one where in the event of a default, a lender can pursue additional assets, including the property’s income stream of a borrower, if the debt exceeds the collateral.
Partners generally get basis for non-recourse debt for distribution purposes but do not get basis for the at-risk rules.
Leverage can be one of the most powerful tools for wealth building when used correctly. Understanding what kind of leverage you have on the next deal you invest into as a passive investor is crucial to analyzing your risk vs. your return. Next time you underwrite a prospective investment opportunity, make sure you take a look at how the capital stack is structured, and what kind of leverage is in place.