Choose terms around the hold
- 1TodayProceeds + cash needed
- 2During the holdPayments + reserves
- 3At exitSale + prepayment
Compare each proposal over the same ownership period.
Match the loan to the ownership plan
A permanent loan should fit the property’s cash flow and the expected holding period. Consider when you might sell, refinance, renovate or bring in a partner before choosing the term and repayment restrictions.
Compare lenders on more than the rate
Loan proceeds, amortization, recourse, reserves, covenants and prepayment can change the economics materially. A lower coupon may come with less flexibility or more required cash at closing.
How lenders assess the property
Lenders examine net operating income, tenant quality, lease expirations, property condition, value and sponsor finances. They may adjust the submitted income and expenses when determining loan proceeds.
Fixed or floating?
Fixed-rate debt can make interest expense more predictable. Floating-rate debt may suit a shorter or changing business plan, but introduces rate exposure. Compare the complete terms and any hedge costs.
What to send us
Current rent roll, recent operating statements, existing debt terms, property details and your expected holding period.
How we arrange financing · Compare term sheets · Documents lenders request
Choose a loan you can live with through the hold
A long fixed-rate term may suit a property with durable income and a long ownership horizon. The same term can create a costly obstacle if the plan is to sell after a few years. Tenant expirations, planned improvements and likely ownership changes belong in the discussion before a lender is selected.
We compile the property information, identify relevant lenders and compare proposals on the same basis. The comparison includes cash required at closing, ongoing debt service, reserves and the cost or restrictions of an early exit.