EPS 271 - Don’t get on the BAD BOY/GIRL list with FANNIE MAE?

Santa Claus has his famous “naughty list” for bad boys and girls. No toys this year…just coal. Today, Fannie Mae - thru their DUS lenders- have a similar ‘list’ that tracks the bad and good multifamily operators. If you are on this list; called the “A Check” you may have difficulties in getting another loan from Fannie Mae. Why is this important today? Because many apartment operators recently (in the last 24 months) have originated high leveraged, non-recourse bridge loans that were supposed to be sold after the rehab, rents raised and then projected NOI being much higher OR refinanced into a Fannie Mae or Freddie Mac loan. Today… you could have a problem to sell if your NOI didn’t go up significantly or your sponsor didn’t realize that they were on the “A Check” on a previous Fannie transaction that had a problem. Don’t get coal from Fannie Mae. Listen to our conversation with two DUS loan servicers.
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
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