Today on the Real Estate Syndication Show, we talk to Jacob Cohen from Walker & Dunlop, one of the largest commercial real estate finance companies in the United States. They provide financing to owners of multifamily and commercial properties by finding suitable lenders and capital for the deals.
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We discuss the point at which people might want to think about consulting with a firm like theirs and why the loan is such a vital aspect of buying a multifamily property. Jacob shares about the different kinds of debt and how it affects your underwriting, how they go about pitching deals to banks and building the right narrative to get the required loan. Sometimes deals fail to close due to issues on the lending side, and he indicates the kind of things to be on the lookout for when it comes to choosing lenders, and he tells us about the advantage they offer their clients because of their years of experience with these parties. As far as the underwriting is concerned, Jacob emphasizes the importance of leaving room for error and the unpredictable fluctuations in the markets. Joining in the conversation, you will also hear what LIBOR is about and why face-to-face engagement with people is so important in this business!
Key Points From This Episode:
- Walker & Dunlop’s objective of finding the best capital for your deal.
- When people should seek help in the process of buying a multifamily property.
- The loan as a critical piece of buying a multifamily property and using a mortgage broker.
- How the different types of debt affect your underwriting and the role of interest-only (IO).
- Their approach to pitching a deal to banks and getting the loan that is required.
- The process of building the story to get the loan and finding the right lender.
- Examples of things that happen on the lending side that cause deals not to close.
- Issues with underwriting that could be an obstacle in the deal.
- The importance of leaving room for error and unpredictable market conditions.
- Guidelines for entry versus exit caps when doing the underwriting.
- An explanation of what LIBOR is and how it functions in a deal.
- The most difficult part of the lending process and working with a deal sponsor.
- Realizing that this is a people business that requires face-to-face interaction.
- And much more!
[bctt tweet=”A couple of years ago I realized that this is really a people business. You’ve really got to meet people. You’ve really got to go to conferences. You’ve got to get out there. — Jacob Cohen” username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Jacob Cohen
Jacob Cohen received his MBA in finance from Bar-Ilan University and his bachelor’s degree in liberal arts from Excelsior College. He is responsible for providing financing solutions to commercial real estate developers and owners throughout the United States. Over the course of his career, Mr. Cohen has been involved with underwriting and placing over $2 billion in transaction volume.
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