Best Strategies to Minimize Prepayment Penalties with Agency Debt

Trying to decide on the best financing strategy for your apartment property?

The 10 Year Treasury briefly tested 2.00% last week, which is great news for multifamily buyers, but is causing major heartburn for owners with agency debt (think Fannie Mae & Freddie Mac) looking to exit early because yield-maintenance based prepayment penalties have drastically spiked, almost overnight.

But with low rates, long runways and non-recourse terms, agency debt is still a great path to finance your property. So we talked to an expert on best strategies to minimize prepayment penalties with agency debt so you can have your cake and eat it too.

Joining the show today is Fritz Waldvogel, Vice President of Dougherty Mortgage, one of the fastest growing Fannie Mae licensed DUS lenders in the nation.

Get Smart and Invest Smarter with the Apartment Investor Show where JC Castillo and Paul Peebles interview top industry experts and discuss current market trends, investment strategies and fundamental concepts to help you make smart multifamily real estate investments.

JC Castillo is an ex-techie turned real estate investor who’s profitably navigated through a full market cycle. In 2006 he founded Multifamily Property Group, a vertically integrated private equity firm focused on large scale value-add apartment properties in select US markets. Learn more about Multifamily Property Group. https://www.multifamgroup.com/

Paul Peebles has been arranging real estate financing for borrowers and institutional clients since 1987. Mr. Peebles is the National Underwriter at Old Capital, underwriting and structuring all transactions handled by the company. Learn more about Old Capital. http://www.oldcapitallending.com/

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