Putting Your Money Where It Counts
One way of getting around the CMBS market's tightened lending requirements is for sponsors to step up and close deals with their own equity. This eliminates the need for bridge financing and shows just how much a sponsor believes in a particular property. I know of one that did it and I applaud the principals for putting up their own cash to get the deal closed. It is a bullish sign for the property. I don't believe many sponsors would be willing to do this, whether they had the cash or not. It runs counter to the OPM (Other Peoples' Money) philosophy of the real estate syndication world.