TMR BLOG: CMBS Loan Brief Explanation

CMBS loans is an unknown loan option for many multifamily real estate investors and not offered at traditional banks. Also known as conduit loans, this loan option could be perfect your property.

Secured by a first position mortgage on a multifamily property, CMBS loans are held in separate trust as collateral for a mortgage backed security. Real estate investors searching for high leverage and low fixed-rates could be the perfect candidate for CMBS loans. These loans are typically non-recourse, with fixed interest rate and 25-30 year amortization period.

Pros of CMBS loans:

  • Available to borrowers with low credit, past bankruptcy, or don’t meet net worth requirements at traditional banks
  • Typically non-recourse
  • Higher LTV than traditional bank loans
  • Competitive rates
  • Loan is Assumable

Cons of CMBS loans:

  • Prepayment penalties or yield maintenance fees make it hard to exit the loan
  • CMBS loans require defeasance
  • Doesn’t allow secondary or supplemental financing

– The Multifamily Review Team


Ep. 18 – Holding Pet Owner's Accountable – Interview w/ John Bradford The Multifamily Review Podcast

Experienced entrepreneur and CEO with a demonstrated history of working in the property management industry and local and state government. Strong business development professional skilled in the rental housing industry, legislative affairs, legal compliance and review, and residential property management.  John is serving a third term in the NC House of Representatives. In his spare time he likes to fish, camp and travel with his family.PetScreening:PetScreening helps property managers and housing providers manage residents' pets and assistance animals (service animals/emotional support animals/companion animals/etc.) for free. There proprietary screening platform adds an additional layer of liability protection by having a standardized process when dealing with household pets and assistance animals. PetScreening no-charge service provides assistance animal accommodation request validation through our comprehensive legal and FHAct/HUD guideline review process. For household pets and their owners, specifically, PetScreening provide property managers and housing providers a comprehensive digital Pet Profile with a FIDO Score™. This proprietary housing-related risk scoring system is calculated from pet and pet owner specific data factors such as, but not limited to, breed, pictures, weight, age, sex, vaccination records, behavioral history and more. The FIDO Score can help generate significant new pet revenue and is often used by property managers and housing providers to fine tune their pet-related pricing policies such as pet fees and pet rent.Contact John Bradford and PetScreening:Visit PetScreening: LinkJohn Bradford on LinkedIn: LinkEmail PetScreening:
  1. Ep. 18 – Holding Pet Owner's Accountable – Interview w/ John Bradford
  2. Ep. 17 – More Than Just A Lender – Interview w/ Austin Walker
  3. Ep. 16 – We're America! This Is What We Do – Interview w/ Chad Musgrove
  4. Ep. 15 – Water Ain't Free! – Interview w/ Scott Rawley
  5. Ep. 14 – Helping the World Find Home – Interview w/ Derek Merrill

Hi, my name is Michael Avent. I founded The Multifamily Review in 2020. I’m a Commercial Agent at Northcap Multifamily located in Las Vegas, Nevada. My vision for The Multifamily Review is to be the most trusted resource for all Multifamily Investors and Industry Professionals. We strive to offer the best and most up to date content to our readers and are always open for suggestions. Make sure you sign up to join our newsletter to stay up to date on our latest blog, ebook, and more exclusive content that’s coming your way! The Multifamily Review team and I look forward to building a deeper relationship with you!

Subscribe to our community Newsletter!

* indicates required

DISCLAIMER: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the multifamily industry.

Leave a Reply