Shoutout to the old CMBS deal vs. the bridge loan I used instead

I spent 3 months shopping a 12-unit in Cleveland. CMBS was the first route. Lower rate, but the prepay penalty locked me in for 5 years. Switched to a local bridge lender at 7.2% with a 2 year term. Closed in 30 days. No lockout box nonsense. The flexibility saved me from a 40k penalty when I refi'd early. Anyone else ditch agency products for smaller stuff?

2 comments

2 Comments

aaronf404d ago

Did you have any trouble with the bridge lender's seasoning requirements?

taylorb943d ago

Dealing with seasoning requirements feels like that one rule that makes no sense but you gotta follow it anyway. Every time I think I've got a lender figured out they throw in some new hurdle that has nothing to do with the actual deal. Makes me wonder if they come up with this stuff just to weed out people who aren't serious.