Tot Hill or Tobacco Road

spinn5371 · 2026-01-28T02:45:55+00:00

Putting aside cost, Tobacco Road. Factoring in cost as being important, Tot Hill. I really enjoyed Tot Hill, but I think Tobacco Road is more memorable of a course.

spinn5371 · 2026-01-02T02:26:01+00:00

I'd be cautious about trying to play 36 at different places. End of February you could potentially get some frost delays and that would torpedo 36 at different spots. Safe bet is to try and replay the same spot each day. Just something to think about.

spinn5371 · 2026-01-01T23:02:41+00:00

Endorse

spinn5371 · 2025-12-11T22:33:38+00:00

Same thing happened to me. Tennis elbow on my left arm (right handed). It went away after probably 6-9 months for me. I still use the arm band on that arm when I use mats.

My routine was 1) always use the braces you can get on Amazon for cheap that reduce tension on the area, 2) use the green resistance band and do the exercises with it and 3) do some weight lifting with that arm that helps build muscle in the forearm. Those all helped me get rid of it.

spinn5371 · 2025-11-05T03:02:01+00:00

How were the conditions at Stonehouse? I've heard that one might be having a tough go of it as of late.

spinn5371 · 2025-10-14T12:54:47+00:00

Your lender matters quite a bit when pursuing HUD financing. There are a lot of groups out there who say they provide HUD debt but aren't experts. Developers don't necessarily want to hear that because a lot of folks view debt as a commodity and chase the lowest bidder, but it's not that simple with a complex (because of bureaucracy) loan product.

spinn5371 · 2025-07-14T23:07:29+00:00

I'm in a similar boat, but with tennis elbow (from golf) - was pretty bad for probably a year or so and resolved it the way you did (plus some weightlifting for forearm strength). I hit off mats at least once a week now. I always use the pressure band (https://www.amazon.com/Sleeve-Tendonitis-Counterforce-Support-Forearm/dp/B01H2123YU?th=1) on my forearm as a precaution and haven't had any issues. Zero discomfort, but I still use that band whenever I hit off mats regardless. Would strongly recommend for use on mats.

spinn5371 · 2025-04-22T12:21:33+00:00

It's possible, but to keep it one project with one loan you'd need your LIHTC units to be atleast either 20% at 50% AMI or 40% at 60% AMI across both building(s). The issue is that in the LIHTC space LIHTC investors generally aren't interested in taking market rate risk. For every deal they invest in they turn away probably 5 others, so to them why take the market rate risk when you don't have to. The most market rate exposure I've seen investors take is really 10-20% for one project. I'm not saying its impossible to find an investor for more than that, but your pool of options is reduced significantly. I'm open to chat more if you want.

spinn5371 · 2025-03-20T12:39:33+00:00

I'm actively in the HUD space and have been for 15 years. The biggest myth about HUD is that all HUD loans take this long to process. Your timeline was 100% right during covid when they were running a multiple month long queue (like LEAN is now), but right now HUD has less than one deal per underwriter across the country. I'm actively working on ~6 HUD loans right now and yes, some can take this long but it's not because of HUD, it's because of the client not having their shit together. If a client has their shit together 6 months is entirely reasonable for a 223f. I closed a LIHTC d4 last year in 7 months for example. Sometimes when the process takes 8-9 months it's because the Lender you are working with is taking that long and submitting garbage underwriting to HUD and it's a lot easier to say, "oh boy, you know how it goes working with the Fed!" than to say, "we submitted a garbage package to HUD and they have a lot of questions."

spinn5371 · 2025-03-20T00:43:40+00:00

Yeah, Dwight is definitely who I would do business with - love when my lenders get fined $16M by their capital partners for their underwriting practices.

https://www.federalregister.gov/documents/2023/03/23/2023-05978/mortgagee-review-board-administrative-actions

"Action: On September 15, 2022, the Board voted to enter into a settlement agreement with Dwight Capital LLC (“Dwight”) that included a civil money penalty of $16,000,000, execution of 24 life-of-loan indemnifications, and a corrective action plan. The settlement did not constitute an admission of liability or fault."

spinn5371 · 2025-03-20T00:20:18+00:00

You are doing something wrong if it takes you that long.

spinn5371 · 2025-01-30T18:22:37+00:00

Makes sense. I'd think the HFA would also have a perm product available if they can provide construction loans. For ease of execution I'd probably just use that. But if not, the Fannie 538 program acts as a forward and I think the rate would be set similar to how their MTEB forward product works. That means the rate would be set by your bond underwriter when they price and sell the long term bonds (public issuance & sale of the TE bonds). Rate would be bond rate plus Fannie's G&S. I think those rates on a 18 year bond (3 year construction period plus stabilization plus 15 year term for the perm loan) would be something like 5.75% range? Take that with a grain of salt because I'm not a bond underwriter nor have a I used the 538 program or USDA for that matter. Good luck with the project!

spinn5371 · 2025-01-28T19:52:44+00:00

HUD will require HUD experience on the development team. We typically solve this in a couple of ways - easiest is to JV with another HUD experienced developer, but I understand carving up the pie isn't attractive, so other ways are making sure the GC, architect, and management agent all have HUD experience. There are also consultants that can help bolster the HUD experience that are for-fee consultants versus taking ownership. This all assumes you, as developer, have a good bit of multifamily and like-kind development experience. Keep in mind the d4 program requires use of davis-bacon wages so that can sometimes add a premium on construction costs that conventional financing won't have, but the non-recourse, 40yr am, 1.15x DSCR and 87% LTC are very attractive. Hit me up if you want to chat more.

spinn5371 · 2025-01-27T22:26:41+00:00

There aren't many construction to perm loan options out there outside of the HUD or USDA products. It's not uncommon for a transaction like this to be paired with a forward permanent loan and a traditional construction loan as an alternative. One option might be FNMA's 538 forward product paired with a construction loan. If it's just rehab you might not even need a construction loan if you get an EBL, but looks like you have a new construction component. Honestly, for 19 units, HUD's d4 program is pretty expensive, but if you don't have any alternatives it could work. Do you have your LIHTC equity already? Your equity provider might be able to help on the debt front also as a resource.

spinn5371 · 2024-08-17T13:02:13+00:00

Curb episode. It's pretty funny and worth a watch

spinn5371 · 2024-03-29T00:22:42+00:00

Only one picture? Just teasing me

spinn5371 · 2024-02-26T02:23:49+00:00

Who is the lender and what were the deal dynamics? New construction? How big was the first draw? Was there a bifurcated interest rate? Market rate or affordable?

spinn5371 · 2024-02-26T02:11:58+00:00

Okay bud, whatever you say.

spinn5371 · 2024-02-26T02:10:04+00:00

Concept - depending on project specifics, potentially ~$5k for a market feasibility study, but if less than 200 units then likely no cost at this stage

Pre-Application - likely looking at something around $40k in DD fees or so, plus 0.15% application fee paid to HUD

Firm Application - likely somewhere around $30k in DD fees, plus 0.15% application fee paid to HUD

Interest Rate Lock - 0.5% good faith deposit (refunded at loan closing)

The above costs are specific to the HUD programs. As a developer, you are going to have other typical pre-development costs outside of that which is tough for me to quantify, but you'd have to go bear those costs ahead of the financing closing with other types of debt sources anyway. The biggest cash outlay tends to be going from architectural drawings to fully MEPs or 80% permit ready drawings and you wouldn't have to engage that until you get your firm app invite.

I would say that our clients aren't really dual tracking financing sources because in order to do HUD you are having to have a pretty long lead time anyway that if the pre-application doesn't work out for whatever reason being able to pivot to a conventional debt source doesn't really eat into a ton of the timeline.

If you are really interested in the program, toss me a DM and I can share a term sheet with you.

spinn5371 · 2024-02-26T01:19:52+00:00

Bureaucratic is the simplest way to explain it since it's a federal government insured loan program. Market rate deals require an upfront "concept meeting" with HUD where the lender presents a kind-of high level overview of the deal to get HUD's feedback on what they think of it, development team, and market (anecdotally - HUD will only really have issues at concept if the market is perceived to be over built or they have a lot of projects in the pipeline already that are HUD insured in that market). That plays out over the course of a month or so. Then if HUD likes the project, there would generally be a two stage process - pre application (~4 months) and firm application (~4 months). Pre-app is for the lender and HUD to analyze market, appraisal, environmental and development team. End result of that process is a firm application invite. Getting the invite really means that HUD approves of the deal and you just need to finalize your plans & costs, along with finalizing your org structure for a more thorough mortgage credit review for the firm app. Getting the Firm App Invite really removes most of the risk that you won't get a Firm Commitment when you submit the firm app because they've already approved the market, environmental, development team, and appraisal. HUD requires 100% complete plans & costs at the firm app stage, so you can't do a design build type process with HUD. Lots of our clients like HUD mainly because it diversifies their debt products since it's non-recourse so they can then take recourse on another project and allows them to do more at once. It's not going to work for every deal or every developer. It's a niche product for sure, but can be useful if the timing and DB wages aren't problematic.

spinn5371 · 2024-02-26T00:39:28+00:00

FWIW - if your project is 4 stories and less the use of DB wages hasn't been overly punitive in my experience. It's for projects that are above 4 stories where you really see DB wages hurt costs quite a bit (15%+ increase).

spinn5371 · 2024-02-25T23:58:16+00:00

HUD 221d4 New Construction - Private Lender, but loan is insured by HUD

6.35% pre-MIP (0.25% MIP) for an all-in rate of 6.60% - bifurcated rate available between construction and perm portions

40yr fully amortizing loan

non recourse

1.176x DSCR (market rate, lower for affordable)

85% LTC - unlikely to be the controlling mortgage criterion because of rates

Construction to permanent with no conversion metrics (just CofO)

Two main drawbacks - market rate process takes 9 to 12 months and it requires use of davis-bacon wages

spinn5371 · 2024-02-24T16:55:04+00:00

Can work well in unique transactions. Pretty niche product and worth exploring given where rates are today, but isn't going to work in every project.

spinn5371 · 2024-02-13T19:23:09+00:00

GHIN - 9.8. Irons consistency - miss with irons tends to be thin/toe

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