How to Raise Debt for a Real Estate Project

We’ve talked about finding deals, sourcing deals, putting a pitch deck together, raising money, and all that stuff — but we haven’t yet talked about how to go about raising debt for a real estate project. So today, we’re going to outline how to get debt from the more conventional (or traditional) sources. We’ll be covering: seller financing, regional banks, agencies that are representing Fannie and Freddie, and large commercial mortgage-backed security loans. Pull up a chair and join us for this real estate-centered conversation on raising debt! Key Takeaways: [:12] Reading our favorite funny review from the last couple of weeks! [1:45] About today’s episode. [2:25] The first step to raising debt for a real estate project: obtaining a loan. [8:11] If you’re just looking to borrow money for a deal, how much should you care about the structure of the loan? [10:16] What information is a balance sheet lender or regional lender going to need to know in order to make a decision about whether or not they’re going to lend you money? [14:24] So which loan should you take — an agency loan or a CMBS? [18:18] How do you know if you’re getting a CMBS loan? And what do these types of lenders look like? [19:32] How big does a deal have to be to qualify for a CMBS loan? [20:05] Where do the big costs come in with a CMBS loan? [21:31] Summarizing the four sources of debt mentioned in this week’s episode and giving some final, additional pieces of information. [23:04] In conclusion: our take on what the best options are. Mentioned in this Episode: Balance Sheet Lender Fannie Mae and Freddie Mac Bellwether CMBS CDO For More on The Alternative Investor, Check Out: TheAlternativeInvestorShow.com The Alternative Investor on iTunes — Leave us a review! See acast.com/privacy for privacy and opt-out information.

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