What Financing Questions an LP needs to ask a Sponsor | How To with Gino Barbaro

Jake and Gino Multifamily Investing Entrepreneurs

Welcome to another episode of How To with Gino Barbaro! In this episode, Gino, co-founder of Jake and Gino, dives into the crucial questions every limited partner (LP) should ask a general partner (GP) or sponsor about the debt and financing of a deal. If you’re a passive investor or an active investor looking to avoid common mistakes in real estate financing, this video is a must-watch.

Timestamps:
0:00 - Introduction and Overview
1:00 - Importance of Understanding Debt and Financing
2:06 - Question 1: What is the Principal Loan and LTV?
4:00 - Changes in Loan to Value Over the Years
6:48 - Question 2: Are the Interest Rates Fixed or Adjustable?
8:24 - Impact of Rising Interest Rates
10:12 - Question 3: Is There a Prepayment Penalty?
11:10 - The Value of Assumable Loans
12:15 - Question 4: Is the Loan Recourse or Non-Recourse?
14:00 - Understanding Recourse and Non-Recourse Loans
16:00 - Importance of Alignment with Sponsorship Groups
17:30 - Common Fees and Aligning Interests
19:50 - Importance of Sponsorship Group's Skin in the Game
21:00 - Three-Step Framework for Passive Investors: The Jockey, The Saddle, The Horse
22:50 - Closing Thoughts and Contact Information

Key Highlights:

• Understanding Debt and Financing: Learn the essential questions to ask about the principal loan, LTV, interest rate terms, and prepayment penalties.
• Loan Types: Discover the differences between recourse and non-recourse loans and why it matters for your investments.
• Aligning Interests: Ensure your interests align with those of the sponsorship group, including understanding fees and the importance of skin in the game.
• Three-Step Framework: Gino’s unique framework for evaluating investments: The Jockey (sponsor), The Saddle (alignment of interests), and The Horse (the deal).

Resources and Links:

• 📚 Get a free PDF copy of our Wheelbarrow Profits book: Email [e-mail]
• 📞 Contact us at 865-800-3905 for more information about Passive Investor Pro
• 🌐 Visit Jake and Gino for more resources on real estate investing

Follow Us:

• 🌐 Jake and Gino Website
• 📸 Instagram
• 👍 Facebook

Thank you for watching! Don't forget to like, share, and subscribe for more insightful episodes. Let us know your thoughts and questions in the comments below!

#RealEstateInvesting #PassiveInvesting #JakeAndGino #HowToWithGinoBarbaro #RealEstateFinancing #InvestSmart #AlignYourInterests

We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/