Financing can make or break a deal, and when you are getting started in multifamily, securing a loan can be particularly daunting. That is why it’s crucial to start slow and build up the necessary track record. Today’s guest, Debbie Bloyd, joins us to share her insights into different financing options.
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Gene Trowbridge and Jonathan Nieh, founding partners of the top syndication firm Trowbridge Law Group LLP have a legal team with over 50 years of combined experience in real estate syndication and the practice of real estate securities law. Over this time Gene and his partners, in several past firms and currently, have helped clients raise close to $5.0 billion dollars in offerings by empowering entrepreneurs to raise capital legally. To learn more about Trowbridge Law Group LLP, visit our website at www.trowbridgelawgroup.com or follow us on Facebook, Instagram, or Twitter.
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We begin the show by talking about how the pandemic has affected rates and what investors should expect when trying to secure a loan. From there, we turn our attention to the FHA construction loan and how it can be used for a single-family or a four or five-plex to work on your lending credibility. While this loan is only for primary residences, Debbie believes it is a good start to establish your track record. We move onto commercial loans next where Debbie outlines some of the options along with shedding light on some of the common pitfalls she sees with LLCs. Investors think this catch-all solution but overlook the significance of a solid track record. Throughout the conversation, Debbie highlights the importance of having a good relationship with your banker, who knows you personally and can vouch for your credibility. We wrap the conversation up with a look into community banks, along with learning more about how Debbie likes to give back. Be sure to tune in today!
Key Points From This Episode:
- Learn more about Debbie’s background and why she loves doing radio so much.
- How COVID has affected Debbie’s business and the lending rates we should be expecting now.
- Find out more about the FHA construction loan, some of the criteria, and the drawbacks of this type of loan.
- Debbie walks us through different funding options for multifamily deals.
- How commercial loans work and the effects that COVID has had on the lending conditions.
- The importance of having a track record if you have an LLC and what this consists of.
- Why more properties in your LLC makes it harder to meet requirements.
- What commercial lenders look for when vetting the financials of potential investors.
- The role that your relationship with your banker plays in securing a loan, particularly at community banks.
- Understanding the differences between credit unions and community banks.
- Debbie’s tips on becoming a professional borrower and how she secured her first property.
- What to expect if you are trying to secure a loan now, with how the pandemic has affected business.
- Why it’s important to adjust expectations during this time.
- A recent business improvement, the biggest contributor to Debbie’s success, and how she gives back.
[bctt tweet=”You can’t really become an investor on a shoestring. — Debbie Bloyd” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Debbie Bloyd
Debbie Bloyd is focused on her clients’ finances and speaks frequently with University students in business classes about money and finance for their soon to be small businesses. Her practice includes mortgages, investments and securities, and insurance. A graduate of the University of Texas at Austin, Debbie currently resides in College Station Texas with her two teenagers.
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