Key takeaways
- Agency (Fannie/Freddie) cheapest for stabilized.
- Bridge for value-add 12–36 months.
- Local bank flexible but smaller.
- CMBS for $5M+ stabilized.
- Match debt term to business plan.
Core concepts
Agency
5–10y fixed; 70–80% LTV; stabilized.
Bridge
Floating; 24–36 months; value-add.
CMBS
10y; non-recourse; institutional.
Step-by-step framework
- 1Engage 3 mortgage brokers.
- 2Match product to business plan.
- 3Lock rate at right time.
- 4Plan refi exit if bridge.
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Common mistakes to avoid
- Bridge without refi exit.
- Floating rate in rising environment.
Frequently asked questions
Agency LTV?
70–80%.
Bridge rate?
SOFR + 300–500 bps.
CMBS minimum?
$5M+.
Recourse?
Agency partial; CMBS non-recourse.
Action checklist
- ☐Three broker quotes.
- ☐Product matches plan.
- ☐Rate lock strategy.
- ☐Refi exit if bridge.
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