As I’ve written in recent posts, The Fed is pressuring banks to reduce risk and the most obvious evidence of this is the struggle in today’s environment to get above 65% leverage. (if that.) Lenders haven’t changed their ‘LTV’ guidelines particularly, rather, they are stiffening the ‘Economic Underwriting’ criteria, and restricting ‘how much loan’ they’ll allow a property’s NOI to support. So, unless your property cash flows like Vesuvius, you’ll likely struggle to get the leverage you seek.
We represent an investor seeking preferred equity participation in California properties that might be a way you can close the gap if you’re short funds to close on an acquisition or short cash to close on a note coming due.
Call with questions, scenarios