https://www.loom.com/share/25a3790c73be4e2a869f7e3fd4554167 This was an answer from a question by @Michael Duguet Managing Agency Debt in Real Estate Investments Objective: To effectively navigate the process of securing and managing agency debt for real estate investments, ensuring a smooth and successful financial strategy. Key Steps: 1. Understand the Benefits of Agency Debt: 2. Beware of Low Interest Rates: 3. Avoid Yield Maintenance Loans: 4. Consider Step-Down Prepayment Penalties: 5. Ensure Loan-to-Value and Debt Service Coverage Ratio (DSCR) Compliance: 6. Prepare for Equity Contribution and Holdbacks: 7. Plan for Closing Timeline: 8. Anticipate Prepayment Penalties: Cautionary Notes: - Avoid being surprised by prepayment penalties by carefully calculating and considering them in your financial planning. - Ensure compliance with agency requirements for equity contributions, holdbacks, and repair obligations. Tips for Efficiency: - Stay informed about interest rate trends to make informed decisions about yield maintenance loans. - Plan ahead for potential repairs and holdbacks by conducting thorough property inspections. - Maintain a clear understanding of the loan terms, including prepayment penalties and equity contributions, to avoid financial surprises during the investment lifecycle.