Experts Counsel Patience in Financing Event

DALLAS-Be patient and be specific were the two main pieces of advice offered by round-table participants to attendees at the first “How to Navigate the Capital Markets Storm with Agency Lending. Presented on June 10 at the Westin Galleria here by Uniondale, NY-based Arbor Commercial Mortgage LLC and RealShare Conference Series, the three-hour event focused on how attendees could obtain debt from agency lenders.

With Fannie Mae and Freddie Mac taking the lion’s share of loans from CMBS, roundtable participants, moderated by Joseph Donovan, Senior Vice President of Production Management for Arbor suggested stronger relationships be developed with equity partners, with those partnerships presented to the lender. Also suggested was building more time into the deal process, from escrow to close.

Brian O’Boyle, founder and managing broker of Apartment Realty Advisors’ Dallas office said the time requirement is especially true when it comes to loan assumptions. He pointed out that the 60-day assumption turnaround is a thing of the past, with most assumptions taking between 90 and 120 days. In response, buyers are asking for more extension rights to be built into their contracts.