Is a Conduit Choice Right For You?
BRANDI SHOTWELL
?? Commercial Mortgage Broker / Billions Funded / Helping You Get to the Closing Table With Confidence
In these ever-changing dynamics of real estate lending, multifamily borrowers may be interested to lock in fixed-rate financing through conduits as floating rates become more expensive.
What is a conduit?
A conduit is a fixed-rate, nonrecourse loan with 5-, 7- or 10-year terms.?
Conduit deals typically provide stable cash flows and favorable credit histories. Some offer a variety of structuring options and may include Class A, as well as Class B, Class C and mixed-use properties.
Multifamily properties are often 15 to 30 percent of a conduit's diversified real estate mix.
This type of loan may be the best choice for you as interest rates rise and floating rate loans become less attractive.
As always, consult your mortgage broker first to analyze which type of loan will be best for your next investment property.