Jonathan Cronin explains financing options through Fannie Mae and Freddie Mac, covering loan occupancy requirements and floating rate loans tied to SOFR.
The most favorable financing that's out there is with Fannie Mae and Freddie Mac. So stabilized deals, over $1 million of loan amount must be 90% occupied for 90 days, et cetera, et cetera. You don't necessarily need to fix your rate with a bank. Some banks make floating rate loans, so that would be priced over SOFR with a say with a similar spread. So sofr today is 430 plus maybe a 250 spread puts you at 6.8% floating rate. That floating rate can go up or down depending on what SOFR does. SOFR is the equivalent of the federal funds rate.
NEVER Buy an Apartment Building Without Checking These 5 Things (I'm a Real Estate Attorney)
