Spartyfann
Oct 13, 11:25 AM
$ABR the question could ultimately come to, can multifamily housing units get done at like 7% interest rates and 75% LTV’s. Currently pricing in like they cannot and people like ABR will fail. But there are a lot of investors putting up the 25% and looking at rent forecast, seeing the potential and trying to make these work. ABR and others can get tougher and more conservative in their lending practices, but aren’t they ultimately helping to provide reasonably priced, safe, housing that seems badly needed. We can’t forget the common equity layer in the projects that is intended to provide some protection to the lenders. But if 75% LTV and 7% interest can’t cut it, this could fail, but then we have bigger issues.
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