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. 25 – Pizza Shop Treatment – Interview w/ Frank Roessler The Multifamily Review Podcast

Frank Roessler is the founder and CEO of Ashcroft Capital, a real estate investment firm headquartered in New York City. Prior to forming Ashcroft Capital, Frank gained over a decade’s worth of acquisition and asset management experience at M&A Real Estate Partners, a national multifamily investment firm.As of 2020, Ashcroft Capital has acquired over $1 billion of assets and 10,000 units. The firm focuses on capital preservation while striving to return strong, risk-adjusted cash on cash to investors. The firm is capitalized with high net worth, family office and institutional capital. Within the real estate industry, Ashcroft specializes in value-add real estate and exhibits an expertise in extracting maximum value from every asset it acquires. Rather than attempting to play cycle timing, the firm strives to acquire excellent apartment communities within well-located submarkets of large and growing U.S. metroplexes.Frank has a Bachelor of Science degree in electrical engineering from Bucknell University and an MBA from the Anderson School of Management at UCLA.Contact Frank Roessler and Ashcroft CapitalVisit Ashcroft Capital: LinkAshcroft Capital on LinkedIn: LinkContact Ashcroft Capital: LinkFrank Roessler on LinkedIn: Link
  1. Ep. 25 – Pizza Shop Treatment – Interview w/ Frank Roessler
  2. Ep. 24 – My North Star – Interview w/ David Deitz
  3. Ep. 23 – Past Due Rent Collection – Interview w/ Greg O'Berry
  4. Ep. 22 – Be The Joneses – Interview w/ Chase Harrington
  5. Ep. 21 – Negotiating Multifamily Access Agreements – Interview w/ Kevin Gardner

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!

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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.

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