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Mike Taravella and Will Coleman explain what you need to know about loan assumptions. Key Information: Yield Maintenance prepayment penalties are more expensive than step down prepayment penalties. The lower the U.S. Treasury rates, the more the expensive the prepayment penalty is for yield maintenance loans. Before getting a property under contract, contact the originator of the senior loan to verify the terms and conditions. Terms to verify: LTV, maturity date, interest only period, DSCR requirements, replacement reserves. Loan assumptions take longer to close than new debt. 75 days is a good estimate. Supplemental loans can be used in addition to loan assumptions to gain a higher LTV. Available terms will vary depending on the property and the borrower. Expert Pro Tip: “Be clear on who and what you are, meditate on it, and then live and die by it” Contact Information: will@randcre.com miket@randcre.com To register to invest with us: https://invest.randpartnersllc.com/invexp/accounts/login/ Rand CRE's Facebook: https://www.facebook.com/randcre Rand CRE's Linkedin: https://www.linkedin.com/company/randcre Rand CRE's Instagram: https://www.instagram.com/randcre