The Fiscal Cliff, the Sequester, and Multifamily Interest Rates
With the election over the news turns to how Washington will resolve the debt ceiling, the Bush era tax cuts, our looming federal debt and the draconian sword of the Sequester, which looms to potentially cut fully a third from the Federal Budget, including Defense. This is high drama, as ideology is tested against the realities of needing more money. A new Congress, perhaps even more divided than the last one, will be sworn in, and while there is talk of a down payment, say $80 Billion on the debt in exchange for a 6 month delay in resolving the issues, posturing seems to be the initial...
Read MoreLand Value and the 221 (d) 4 Program
How are FHA and Al Capone the same? Well, let me share a story… One night in the 1920s, Al Capone went to an Italian restaurant in Cicero, Illinois. The Capone entourage sat down, the waiter came up to the table to get the drink order and as he was leaving, Al Capone slipped the waiter a $100 bill, saying “take good care of us”. Five, Ten, Fifteen minutes went past and the waiter hadn’t returned. Al went back into the kitchen and said, “hey, where’s my waiter”? One of the help said “He came back here holding a $100 bill, and said ‘I quit this lousy job’ and walked out the back door”. The...
Read MoreOrganizational Costs
For people new to the 221 (d) 4 program, some of the terms are unique to FHA, and the items they entail are often unclear. Making certain you have your soft costs included in the loan is important if you expect to get them paid through the loan. One of those categories that cause some confusion is “Organizational Costs”. Think of it this way: You are going to incur costs to put your partnership or ownership entity into place. For yourself or your investors, the rights and duties must get spelled out as well as who get what ownership percentage, whether it is a preferred interest, who gets to...
Read MoreAbout Daniel R. Crain
Danny Crain has spent most of his 30-year career involved with apartment financing and mortgage banking. Just prior to founding Crain Mortgage Group, LLC in 2009, Danny spent 10 years as Senior VP for GMAC Commercial Mortgage Company and was successful in closing over $500,000,000 in FHA multifamily loans. His career closings, however, well exceed $2 billion.
Intimately involved in multifamily financing since 1981, Danny actually helped close the third ever coinsurance loan in the country in 1983, making him a bit of a mortgage pioneer. Other work experience includes originating FHA loans in the Southwest for TRI Capital, overseeing the liquidation of 580 subsidiaries of failed Savings & Loans as an Asset Manager for the Resolution Trust Corporation, and employed by Fannie Mae in the Multifamily area as a Senior Investment Officer for the seven state area centered in Texas.
Danny earned his Juris Doctorate in 1977 and is a member the Texas Bar Association, Oklahoma Bar Association and the California Bar Association. He also maintains his real estate broker's license in both Texas and Oklahoma.
