Podcast: Multifamily real estate loans

When speaking about real estate loans, I like to say without debt, real estate is a very mediocre investment. You’re probably better off investing in stocks and call it a day.

A lot of people are turned completely off by debt. Which is understandable. Debt is like fire. It can cook your food or burn your hand off. Its like water. It can quench your thirst or drown you. You MUST understand debt in order to make smart decisions when investing in real estate.

At my company Elite Capital Partners, we use debt to buy apartments. Rule #1 we have, never over leverage a piece of property. We use moderate risk adjusted debt to boost our returns.

One of the problems investors run into is the fact that they over leverage. They want to put the least amount down as possible which could burn you in an economic pullback.

TYPES OF LOANS

There’re all types of loans. Agency debt through the likes of Fannie Mae and Freddie Mac, bridge loans, mezzanine loans and more.

On this podcast episode we have Austin Walker of Arbor Realty Trust to educate us more about financing and what it takes to obtain financing for multifamily properties.

Being the son of a former NFL player, Austin walks us through his journey into financing commercial real estate and the basics of obtaining financing.

KEY TAKEAWAYS

• You’ll learn the meaning of agency debt.

• The 3 main things lenders look for when qualifying a borrower.

• How to strategically meet the net worth and liquidity standards.

CONNECT WITH AUSTIN

Linkedin –Austin Walker profile here

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