Arena Investors, LP’s Post

Just when you thought Rikvin Capital might take a breather after raising $100 million, we thought, 'Why not go for another $50 million?' 😉 Some call it ambition; we just call it another day at the office. Huge shoutout to our phenomenal team and investors. Here's to setting the financial bar higher... and then surpassing it! #RikvinCapital #AlwaysRaisingTheBar"

At KeyBank Commercial we actively use pref equity as a tool to bridge the equity gap in cases of a shortfall in refinance proceeds. Pref equity is also coming into play on new acquisitions because of the attractive overall cost of capital compared to using expensive floating rate debt funds. For example, debt funds provide general pricing starting at SOFR+325bps (8.5%+) which will also require a rate cap. The corresponding leverage at this pricing level is anywhere from 75-80% LTC. Alternatively, you can take an Agency loan (5.8-6% on the senior debt that is fixed with no interest rate risk) and layer in a portion of pref equity at 7%- 8% current pay to finance renovations or simply reduce the amount of equity needed to bring to the closing table. Once the business plan is complete, you can repay the pref with a supplemental loan with both Freddie and Fannie. The overall leverage can be on par or better than taking a debt fund. We are accustomed to working with the best in class pref equity providers that are pre-approved by the Agencies. This excellent article written by Tara Darling, Esq. illustrates the specific requirements with the Agencies in how they look at pref equity and the constraints put on the pref lender. We are seeing pref equity terms on the full capital stack at 85% LTC, 1.05x DSCR, 6-7% current pay, 13% total pay rate, 1.3-1.4x MOIC. For Borrowers that are looking for a seamless process in closing an Agency loan with subordinate financing, it’s critical to choose a lender with strong relationships with pref equity providers that have closed many transactions so if there are issues that come up in closing, they know how to resolve them. Not all Agency lenders are created equal in this category and at KeyBank Commercial we have the expertise needed to put these structured deals together. If you have questions or want to see how your deal sizes out, send to: Alan_isenstadt@keybank.com #pref #prefequity #multifamily #Freddiemac #fanniemae #debtcapitalmarkets #subordinatefinancing #multifamilyfinance

In today’s challenging economic climate, many institutional capital sources are becoming increasingly limited. At HALL Structured Finance we recognize these challenges and are working to fill the gap by originating new construction and bridge loans across the United States, with a focus on the hotel and multifamily sectors. Our proven 27-year track record demonstrates our expertise as a trusted direct lender. We provide our clients with best-in-class financing solutions that meet their unique needs. See how HSF overcomes challenges in the market with Brian Mitchell. #hallstructuredfinance #capitalmarkets #commercialrealestate #dallasrealestate

An interesting insight from us here at Henray Capital | Development & Bridging Finance Brokerage Give it a read and get in touch to discuss your thoughts on March 2024!

Deal structure is one of the most important elements in a real estate transaction. Get it wrong and a dip can crush you. Get it right and buy yourself time when the market goes sideways. Timing is the most important aspect of a deal. While location is certainly up there in asset qualifications (remember: location, location, location) timing and deal structure can mitigate locational flaws. Get timing wrong (and deal structure can buy you time) and the deal is sunk.

Whether office or multi-family, the concerns for lenders revolve significantly around exit strategy and what the future of insurance availability is and what the cost will be. These issues are impacting underwriting on loan mods and new loans.

A new partnership between Scottish #fintech firms DirectID and LendInvest (LSE: LINV) is set to reshape the landscape of property finance. Gone are the days of cumbersome, time-consuming credit assessments that often slows down property financing. With DirectID and LendInvest a transformation is underway. This collaboration promises to not only expedite the credit decision process but also enhance its accuracy and reliability. Read more here https://lnkd.in/enwG5cFR #fintechnews #fintechinnovation #fintechrevolution #fintechsolutions #fintechindustry #fintechforgood

Exciting insights from Oaktree (article by Alternative Credit Investor) confirming our long-held belief at i2 group: asset-backed finance is - inter alia - the future of private credit, not just a short-term trend. As commercial banks retreat, alternative lenders step in, providing crucial structural protections and reliable cashflows. Leveraging our in-house software and structuring as well as private credit expertise, i2 group can enhance transparency in these cashflows as well as empowering alternative lenders with a comprehensive overview of all private credit transactions. (source: https://lnkd.in/dXMkWfP7)

Fairbridge’s “A” Note loan program is helping bridge lenders meet the increasing demand for loans from borrowers by financing a portion of a loan in a senior position. Our “A” Note financing program specifically targets 12-to-24-month real estate bridge loans, with advance rates of up to 80% against the loan. We target “A” Note tranches of $2 million and higher. Fairbridge provides direct lending through a seamless origination and underwriting process, with flexible loan structures and timely execution. ► Please contact our team if you have a project to discuss - https://hubs.la/Q02kVl2H0. #realestatefinancing #bridgeloans #bridgeloans #bridgelending #RealEstateBridgeLoans #AlternativeInvestments #fairbridge #commercialrealestate #aloans

This was a unique property we were able to provide an acquisition bridge loan on in November. . The property definitely needs some work and has some colorful tags provided by the city for a few of the units. . Value add deals in multifamily are difficult in today's environment any time tenants are involved. . The fact that 2 of the units were vacant at the close, and the other 2 are being required to vacate by the city shortly after to close, will allow our borrower to start work right away. All of the units have the same bed/bath count allowing them to rotate tenants in the occupied units to renovated ones if that is what the strategy calls for. . This deal was referred over by an experienced Mortgage Broker in our network and we were happy to deliver on our terms for them. . We do not fund our loans on a correspondent program nor are we backed by institutional money. . What does that mean to you as a Mortgage Broker or Sponsor? . You won't have a credit box change or new exceptions pop up 14 days after file submission. Heck, we would probably be funded in 14 days. . If you have a CRE deal that needs to close before the end of the year, send me a message. We do not have a due diligence deposit on our loans. Run your file concurrently with your perm lender and allow us to show you how quickly we can get to docs. It is good to have viable backup options when a 1031 exchange is on the line. . It just starts with a call. . . . #SLCG #SLCapitalGroup #knowwhoyouworkwith #confidenceatwork ##multifamily #taxman #hardmoney #privatemoney #bridgelender