Well folks, we have to acknowledge that COVID-19 isn’t going anywhere...at least not anytime soon. As a result (and as you may have noticed), BEC 2021 will be held virtually, for the first time, due to COVID-19. And, while we are disappointed not to be together in person, we are excited to funnel all our efforts into a virtual networking experience like no other. Seriously. As soon as you sign up, you will start reaping the benefits. What do I mean? We really had to think out of the box on this one.
The big question was:
How can we make a networking event successful in a virtual environment? The Best Ever Real Estate Conferences are great because they provide attendees with the opportunity to network with fellow investors and industry influencers from around the world. That is it’s greatest benefit and we know how critical that is to you and your business. In order to offer all attendees the opportunity to share business strategies, meet high net-worth individuals, and learn something new, we came up with a solution, several in fact, that I think you will love. We’ll have video conferencing and chat rooms dedicated to hundreds of different networking topics.
If you want to meet like-minded folks from around the country, if you want to find a partner, deal, or money from the comfort of your home office, or if you just want some good old fashioned new conversations in a world devoid of connections, then this virt2..21. D, 4. SET. HUTHUT, HUT. No, the 221(d)(4) is not referring to something a stud Texas Tech quarterback would call out before being snapped the ball. (p.s. Ill give you one guess where I went to school.) It is, however, one of the HUD multifamily loan programs for new construction or substantial rehab work of multifamily properties for moderate-income families, elderly and the handicapped, according to the HUD website.
It ensures the lender against any loss on mortgage defaults (i.e. it takes the risk out of the lenders court). There's surprisingly very little info out there on the program, and the info that is out there isn't the easiest to understand. Some may even have trouble finding out how to get commercial real estate loans like this. As of today, I have not done any of the HUD multifamily loan programs, but I am considering the 221(d)(4) for my next purchase. So I thought Id take some time to investigate more about it and speak to people who have first-hand experience with this program. To get the scoop on the program I went to an expert. Brad Armstrong, president of Armstrong Mortgage Company, who has successfully originated over 50 221(d)(4) loans. I also talked to seasoned investors who are familiar with the program. First, why the heck should you care about HUD multifamily loan programs, specifically the one mentioned at the start of this article? Glad you asked.
So you can see the benefits are pretty compelling. Because it is non-recourse, the only way HUD can recoup losses should there be a mortgage default is to take back the property. Therefore, they are primarily looking at these two things:
When talking to seasoned investors, some of them were against this HUD multifamily loan program due to some drawbacks. Heres what they said.
As with a lot of government programs, there is a lot of paperwork, and it is very time-consuming. It is essential, according to EVERYONE I spoke to, to have a HUD consultant. It should be someone who has gone through the process and knows the language and can guide a first-timer through how to get commercial real estate loans like this successfully. The underwriting process is going to be 180 days total. 90 days for a soft commitment that basically says yes, we like your project and it will be approved contingent on these stipulations. And, 90 days for a firm commitment. For each stage in the process of applying for the 221(d)(4) HUD multifamily loan program, soft and firm commitment, there is paperwork and reports that are required.
My overall takeaway is that, if your project qualifies, then the 221(d)(4) HUD multifamily loan program is worth doing, as long as you have someone on your team you trust and has successfully gone through the process many times before. All the fees that are charged are outweighed by the advantages, and, in the end, you'll come out with better returns. ual event is a can’t miss. Exclusive to this year’s virtual event, when you sign up you will be thoughtfully placed into a Mini Mastermind group with your fellow attendees of groups no bigger than 8 people. No other conference provides you the opportunity to connect so intimately and learn as thoughtfully from your fellow attendees this far in advance from the actual date of the event.
We’re making the virtual networking easy for you this year. The Mini Mastermind groups start as soon as you sign up, so make it count and register now. Additionally, in the months leading up the conference, we’re offering all of our ticket buyers free access to exclusive monthly webinars discussing topics such as the current political climate and how the incoming Biden administration‘s decisions on a range of issues could impact the commercial real estate market and industry directly. So, while 2021 has presented us with challenges from uniting in person, we are going to continue building the essential dialogues and connections in the world of real estate. We are looking at this as an opportunity to expand our network to include those that normally would be unable to attend and offer exciting new elements made possible by the virtual environment.