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We, as 25 year veterans in the refinancing of cooperative underlying mortages, should be given more attention as to our acute skills and contacts for these type transactions. We here at Richland Equity Resources Corp DBA the richland group. have closed 5 deals in 2011-12 ranging from $1.6- 3.2 million with LOC's when any Board member or a tagential entity could not have obtained the rate and terms we did due to out full understang of how the lenders operates, which ones participate, and our focus on The Cooperatives' need only.
A post for thought
Steve-
We work with NCB and the other CMBS Servicer's that Co-Ops have existing loans with. For a complimentary defeasance analysis please call 800-624-4779 or email sburnett@defeasewithease.com.
Thanks
Scott-
Commercial Defeasance, LLC
www.defeasewithease.com
800-624-4779
Steve,
Generally, on the rate issue, I recommend 10/1 I/O loans amortized over 40 years which keeps the payments down and additional principal payments can be made which are recognized immediately.
Self-amortizing mortgages are fine but do not allow for any unexpected assessments.
On the issue of defeasance, we as a real estate finance firm assist with cross-collateral properties on the advisory basis which is included in the fee we charge and not in excess thereof.
As a licensed real estate broker as well I assist clients with these issues as we have many sources, both institutional and private.
Richard Russell
Pres/ CEO
Richland Equity Resources Corp.
www.richlandequity.com
mortgage@richlandequit.com
212-681-9888
The type and terms of a new mortgage depend on your current financing, your finances and your goals.
We were able to reduce our mortgage rate from the low 7's to mid 4's for the same monthly payout and from a balloon to a fully amortized mortgage, plus get cash to add to reserves. You might get a better deal with a lender who will be holding the mortgage rather than selling it in the secondary markets. NCB for example apparently bundles their mortgages and adjusts your rate to their target rate for the bundle. So, even if the current rates are lower, they may add 'points' to bring your rate up...
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Do you recommend fixed rate self-amortizing mortgages or fixed term interest-only mortgages to your clients? Why? What are the pros and cons of each.
What are your thoughts about defeasance and how do you help Co-ops that want to refinance early but are subject to defeasance?
Thanks,
--- Steve
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