By walt.nally@nafinc.com
February 10, 2016
I was meeting with a large developer of a high-rise for a new condominium tower in Los Angeles with approximately 200 high priced units for sale. I was there as one of the lenders pitching to do the end financing or what's called take-out financing, which is basically doing the loans for each buyer in the project. He asked me if we had a maximum number of units we could lend in the building. As a mortgage banker I knew that every lender has a maximum number of units they will do in any building. Some lenders will do only 10% , while others may go as high as 50%. No lender wants to do 100% of the units for obvious reasons... to avoid risk. Funny thing was the developer told me that a major bank who will remain anonymous told him they will do 100% of the units! That they have a large portfolio and should be the only lender tied to the building. That he didn't need anyone else. I told the developer he should get that in writing! Here's what he received.
As you could imagine no developer was going to rely on this letter. The words "willing" and "currently no guideline" didn't make him feel a sense of comfort.
Walt Nally Regional Builder Sales Manager. New American Funding
9465 Wilshire Blvd. Suite 400, Beverly Hills, CA 90212
Cell 310-715-9033, walt.nally@nafinc.com