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Ep. 147 - The Freeze of Lending; Inside Rates of HUD Loan; $5 Million Loan vs. $25 Million Loan
In this episode of Kiss My Assets - Jamison Manwaring interviews special guest, Kimberly Taynton, who is the Vice President and Senior Underwriting for BWE (Bellwether Enterprise). The two delve into various facets of commercial real estate lending, with a primary focus on HUD (Housing and Urban Development) loans, property sizes, and career guidance. The conversation dives into the applicability of HUD loans across different property sizes. However, it's also noted that processing small apartment buildings with HUD can be quite labor-intensive. Despite this, lenders typically prefer larger loans, typically ranging from one to two million dollars or more, due to the effort involved.
The discussion proceeds to shed light on the average loan sizes within the HUD program. Kimberly mentions that her company’s primary focus lies in loans of $25 million and above, with some even exceeding the $50 million mark. Interestingly, these loans are sized at 80% loan-to-cost or occasionally as high as 85%, despite facing higher interest rates.
The conversation takes a turn towards offering career advice, especially for young college students. Kimberly suggests pursuing a degree in Real Estate Finance or obtaining an MBA with a finance background. She highlights the importance of gaining practical experience through internships to ascertain whether the field aligns with one's interests and ambitions. However, she also cautions that despite the intriguing nature of the real estate industry, it involves meticulous detail work and extensive writing.
Kimberly emphasizes the critical factor of finding a career that complements one's interests and strengths, whether that lies in underwriting, origination, or other aspects of real estate. Moreover, she shares her own career journey, noting how she transitioned to client-facing roles alongside her underwriting responsibilities, adding depth to her career experience.