IRVINE, CA— Multifamily transactions that don’t require a lot of structure are best when figuring Freddie Mac into the equation, ReadyCap Commercial ’s CEO Jim Going tells GlobeSt.com. The firm is one of a few lender partners in the Freddie Mac Small Business Loan program for multifamily deals. We spoke with Going exclusively about the program and what borrowers can expect from it. GlobeSt.com: How does the Freddie Mac Small Business Loan program serve the market in terms of long-term debt capital needs of borrowers/investors?
Going: Freddie Mac provides a product that is competitive with depositories. From a cost and structure standpoint, that allows ReadyCap to be competitive when facing those institutions in a transaction.
GlobeSt.com: What is the current and expected deal flow for this program?
Going: We are targeting $100 million to $150 million in 2015. We are seeing a great deal of interest in the Freddie Mac product from our referral sources.
GlobeSt.com: What types of deals work best for this program?
Going: It’s hard to characterize. The Freddie Mac program is probably better-suited for the “cleaner” properties, as opposed to those that need a structure.
GlobeSt.com: What should borrowers look for or expect with the program in terms of processing and fees?
Going: From a ReadyCap perspective, the fees are very simple. You provide us a $2,500 processing fee, and we fund a loan, if it meets our guidelines. We have other programs, and we cap them at $2,500 as well. We process the loan in a way that’s very similar to the way we currently do other loans at ReadyCap, and we try to close in 45 days or less. Speed to market is very critical, particularly in transactions involving a purchase.
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