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


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