Our rates are low, our application is quick and easy! We can get you clear to close in as little as 10 days!
NMLS ID # NMLS # 228246
William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.
Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.
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š Pros & Cons of STNL Deals for Mortgage Brokers and CRE Lenders š§¾
š¦ Financing a Single Tenant Net Lease Property: What You Need to Know šø
š¦ Financing a Single Tenant Net Lease Property: What You Need to Know šø
Financing Single Tenant Net Lease (STNL) properties can be both a smart and strategic play for investorsābut lenders must assess the structure differently than traditional multi-tenant assets. Hereās what mortgage professionals and property owners should consider.
The Basics of STNL Deals STNL properties typically feature long-term leases (10-20 years) where the tenant pays taxes, insurance, and maintenance. These deals are considered low-touch from a management perspectiveābut not always low-risk.
Lender Considerations for STNL Financing
š Tenant Credit Strength: Lenders will closely evaluate the credit rating and financials of the tenant. An investment-grade tenant means stronger terms.
š³ Lease Terms: The length of the lease and rent escalations impact the loan structure. Short remaining terms can be a red flag.
š¦ Loan Type: Most STNL properties qualify for permanent loans, CMBS, or private DSCR loans.
āļø LTV & DSCR Requirements: Expect lenders to seek a DSCR of 1.25x or higher and cap LTV around 65ā75%.
Advantages for Borrowers
ā Easier underwriting when tenant credit is strong.
ā Streamlined operations make cash flow easier to evaluate.
ā STNLs often work well in 1031 exchanges.
Risks to Watch
ā ļø Re-tenanting risk post-lease.
ā ļø Asset location and tenant industry stability.
ā ļø Rate volatility affecting cap rates and valuations.
How We Help At our brokerage, we connect borrowers with lenders who specialize in net lease financingāensuring terms that reflect the propertyās real value and income profile. Whether you're acquiring, refinancing, or doing a cash-out, weāve got you covered.
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Ā© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright Ā© 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/
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