Jake and Gino Real Estate Entrepreneurs RCRE - What to Know About Supplemental Loans
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:
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info@randcre.com
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About Jake & Gino: Jake & Gino are multifamily investors, operators, and owners who have created a vertically integrated real estate company. They control over $350M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino here --> https://jakeandgino.com.
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