Old Capital Real Estate Investing Podcast With Michael Becker & Paul Peebles

John Darrow is an underwriter with Red Capital. He specializes in SMALL BALANCE- AGENCY loans under $7 million for NEW apartment buyers. In some areas of the nation…they will lend up to 80% leverage. He explains the differences between NON RECOURSE apartment lenders Fannie Mae and Freddie Mac. These two AGENCY lenders are similar, BUT they have important differences that YOU need to understand. REMEMBER, Fannie Mae and Freddie Mac will only lend on historically stabilized apartment buildings. They are current cash flow lenders. They will NOT finance a distressed asset (low occupancy and low NOI). Longer interest rate term, higher leverage, and non-recourse are some of the benefits of using AGENCY financing for apartment investing. You should be able to answer these questions: What lender will include REHAB into their loans? Can you get a NON RECOURSE loan in a small town with 30 years amortization? Can you do a 10 year fixed with 10 years of INTEREST ONLY? Why are these apartment loans typically better than l