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TMG arranged the $1,650,000 cash out nonrecourse refinance for a MHP

Tags: mobile home park financing, MHP loans, nonrecourse loans, cashout loans
Friday, Sep 20, 2019
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source of Mobile Home Park financing arranged the $1,650,000 cash out nonrecourse refinance for a park located in Indiana. The borrower’s goals were to get cash out to buy out a partner and make improvements to the park.  

The team at TMG worked extensively with the borrower and legal teams to mitigate title issues.  In the end the borrower received a great long term loan and low fixed rate.

Summary: 

Location:  Indiana
Property:  90 pad Mobile Home Park     
Loan Amount: $1,650,000
Interest Rate:  4.67%; 
Term:  10 Years
Amortization:   30 Years
Prepayment:   Defeasance
 

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The Madison Group arranged the $6,6M nonrecourse loan for a 66 unit multifamily in Utah

Tags: multifamily financing, apartment loans, non recourse loans, Utah commercial loans
Tuesday, Sep 17, 2019
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source of Multifamily nationwide, arranged the $6,600,000 refinance for a 66 unit multifamily in Utah. The borrower’s goals were to get a nonrecourse loan and a fixed term of 10 years. The property is the second phase of a 3-phase project that has been wildly successful in this growing market.

TMG worked with the lender to fund the long-term loan within 60 days of the property becoming 90% occupied. This allowed the investor group to take advantage of the low rates available in the market. The nonrecourse loan provided the structure the borrowers needed. Phase 3 is ready to start construction before year end.

Summary:  

Location:  Utah
Property:  Apartment Complex
Loan Amount: $6,600,000
Interest Rate:  4.4%
Term:  10 Years
Amortization:   30 Years
Prepayment:  Yield maintenance
LTV:   65%

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Top 10 tips to make your refinance process go smoothly

Friday, Sep 13, 2019
by Jeff Meierhofer

How to Make Your Commercial Loan Process Easier

Are you considering refinancing the existing loan on your commercial real estate? Maybe you want to lower your overall monthly payments, lock in a low fixed rate, or take cash out for property improvements.  Maybe you want to invest in another property, or refinance an existing note with a upcoming balloon payment? Even if you aren’t currently considering a refinance, it might be prudent to do so given the current interest rate environment and the overall health of the credit markets. Markets are cyclical and the 10 year treasury has just hit a high, marking what could be the long awaited increases in long term interest rates. 

The Madison Group works with clients to help them determine if a refinance is the right option.  Here are some factors and tips for you to consider before you start the refinance process. 

Top 10 tips to make your refinance process go smoothly

1.    Prepare your profit and loss – the lenders will ask for 3 years and a trailing 12 month by month

2.    Have an up to date rent roll that includes move in, move out, lease terms

3.    File your taxes – you are normally asked for 3 years of personal and business

4.    Know the value of your property

5.    Determine if your current loan has a prepayment penalty

6.    Have a personal financial statement prepared to show your net worth

7.    Create a schedule of real estate owned that includes property values and debt

8.    Prepare a proforma for your income and expenses for the property for the next year

9.    Be aware of any competing properties in your area

10.  Be realistic on how much time your need to get a new loan in place.

Where to begin?  The first question to consider is whether or not you have a prepayment penalty on your existing loan.  You can determine this by reviewing your loan documents or calling your lender to ask about the penalty.  Make sure that you are not “locked out” of any prepayment of the loan and also review the documents to see if you will have an exit fee.  It will be important to understand all of the fees associated with the payoff of the loan in order to make the best decision financial decision.  If you have a loan that is maturing, be sure and check the prepayment open period.  These periods typically range from 3 – 6 months, and you want to be sure to begin the refinance process well in advance of the maturity date.  

The next step:  If you determine that a refinance is your next move, you will need to prepare some paperwork to determine if the loan is feasible.  Lenders will look at your current and historical cash flow, along with rent rolls to determine a value and debt service coverage on the property.  The professionals at The Madison Group can analyze the information you provide to quickly determine your ability to refinance.

Prepare your paperwork:  Lending professionals will require that you submit a personal financial statement with a detailed schedule of real estate, 2 years of personal and business tax returns, 2 years of profit and loss statements on the property along with year to date information and a current rent roll as part of a basic underwriting package.  They will also request details on capital improvements to the property over the past few years. 

I qualify, now what?  As you move forward with the refinance, you will next want to consider your long term outlook for the project.  Are you keeping it long term?  Do you have some much needed improvements to do?  Do you have lots of equity that you could reinvest at a low cost of funds into another asset if you were to cash out the property? Is your strategic plan to sell the property in the next few years?    There are many options to consider as you move forward in order to make the most prudent decision now.

What type of loan do I want?  Now that you have thought about the process and what you would like to achieve, you will need to determine what type of loan you want.  Do you need recourse or a non- recourse loan?   How long of an amortization do you want?  The difference in cash flow on a 25 year am vs a 30 year am can be significant.  Do you want a self-amortizing loan?  Are you comfortable with a shorter term fixed portion of the loan if it gives you the ability to prepay and sell the property at some point in the future?  There are also many options for fixed and floating loans.  When calculating your savings, you will need to add this into your calculations.  You may also be asked to make an upfront deposit to pay for third party reports and legal.  Once you decide upon a strategy, be sure and ask these details up front. 

The professional at The Madison Group will partner with you every step along the way to the loan funding.  They work with the third party reports, and underwriting conditions, to ensure you have a success closing.  Often, unknown conditions pop up, and the team is invaluable to eliminate these potential deal breakers.

The Madison Group has a proven approach to commercial real estate loans:

  • ·         We give fast, straight forward answers to your lending questions.
  • ·         One person will handle your file from start to finish.
  • ·         We will eliminate the tangle of paperwork.
  • ·         We place our loans with direct lenders

When considering refinancing your commercial loan, consider hiring an experience commercial loan broker like The Madison Group, you will save time and effort.

Please give us a call if we can assist you with your loan needs
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Mobile Home Park Loans

$1.6MM Cashout Refinance on a MHP in Idaho

Tags: mobile home park financing, MHP loans, Idaho commercial loans, Cashout, Refinance
Wednesday, Sep 11, 2019
by Jeff Meierhofer

Summary:  The Madison Group (TMG), a leading national lending source of Mobile Home Park financing, arranged the $1,652,000 cash out refinance for an MHP in Idaho. The borrower’s goals were to get a cash out refinance to recapitalize his investment after 12 years of ownership.  The park has 57 pads and 18 park owned homes.

TMG worked diligently to get the loan closed by stayed on top of insurance and legal items. In addition, the borrower is out of town in the middle of closing his loan, so special arrangements were made for a smooth closing.

Location:  Idaho
Property:  Mobile Home Park
Loan Amount: $1,652,000
Interest Rate:  4.50%
Term:   10 Years
Amortization:   30 Years
Prepayment:   Yield Maintenance
LTV:   75%

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Supplemental Financing Options

TMG Arranges a Supplemental Loan for 32-unit Apartment in Utah

Tags: supplimental loans, 2nd mortgage, apartment financing
Tuesday, Aug 27, 2019
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source of multifamily financing, arranged a supplemental loan in the amount of $1,171,000. The 32-unit town home project was purchased with agency financing a year and a half ago at a low LTV. 

TMG assisted the borrowers with the original purchase of the property with a FNMA loan.  The clients purchased the property with this loan type with the intent of increasing their proceeds once they were able to increase the operating income.  TMG locked in a low rate 2nd mortgage which is co-terminus with the 1st mortgage, and the client was able to recapture a good portion of their original cash infused into the transaction.

Location:  Utah

Property:  32-unit apartment

Loan Amount: $ 1,171,000 2nd mortgage

Interest Rate:  4.49%

Term:   13.5 Years

Amortization:   30 Years
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