Episode 4 of the Wheelbarrow Profits series: Rand Partners Podcast where we provide a quick hit of Multifamily education weekly!  Jake Stenziano and Dylan Marma host this sub-series which is designed to educate you in a short period of time, whether on the subway, driving to work, or on a jog. We’ve created this series to give actionable content that is quick and to the point.   [0:00:01] Jake Stenziano: All right, dude. You ready?   [0:00:02] Dylan Marma: Ready.   [0:00:04] Speaker 3: Welcome to the Wheelbarrow Profits podcast, Rand Partners edition.   [0:00:16] Jake Stenziano: Hello, everybody. This is Jake Stenziano, host of the Rand Partners Podcast, your quick hit for multifamily education weekly. Today I'm joined with Mr. Rand Partners himself, the D-Dog, Dylan Marma. Dylan, how's it going?   [0:00:25] Dylan Marma: Always making it happen, Jake.   [0:00:27] Jake Stenziano: Hey, we got a good one for you today. We're continuing with the framework. Today we're talking finance right, and we're going to take a deep dive into something that we use all the time, the Freddie Mac Small Balance Loan program, Freddie Mac SBL. You may hear that getting thrown around a lot. This is a fantastic program. I think it was designed to compete head-on with the community banks, and over the last few years, it's really got some traction. I mean, we probably do four or five of these things a year, and it's just a really good program to allow people to scale deals that may not have been traditionally a conventional Fannie deal. I think the key to it is you can take a million to two-million-dollar deal now and get great nonrecourse financing for it, so you're not going to be maxing out your community bank and hitting with their loan requirements. So, I think the first thing that we want to touch on here is what is it going to take to get into one of these deals. Typically, we know that they're looking for a net worth requirement equal to the loan amount, so this can be pooled together amongst yourself and your partners, and liquidity up to nine months of principal and interest. Dylan, anything else in regards to these pieces or just the program before we get into the top headlines here?   [0:01:50] Dylan Marma: Yeah. So, the Freddie Mac SBL program came out just a few years back, and since launching, it's taken a huge market share. It's an extremely attractive financing option for people that play in the space. With the smaller deal size, typically the program maxes out around six million dollars, in some cases up to 7.5 million. For a long time, the conventional loan would not finance in that deal size, so you were stuck looking for alternative options, usually having to take on recourse financing, usually at a higher interest rate. So, you're taking on these risks of your debt options in a smaller field, so since Freddie Mac launched the SBL program, it's became really the staple for this deal size, for something that's stabilized. Today we wanted to share with you just a few of the things to look for to make sure that your deal is right for the Freddie Mac SBL program. I know we've closed on a few of these, in terms of refinances, over the past couple months, and then with Rand Capital, the loan brokerage arm, we actually have two of these that will be closing next month, so we're seeing them left and right, and it's a very common tool in our business.   [0:02:54] Jake Stenziano: Yeah. So, one thing for our group personally in-house that we were facing is there's these thresholds that you'll hit with community banks, and I think our bank can go up to somewhere between 10 and 15 million dollars, but if you're doing the volume that we do, you're going to hit that really quickly, so you're going to have to get maxed out, and keep going and developing these relationships with community banks, and you're getting recourse financing time and time again, so this gives you the ability to get that debt off your balance sheet, and actually have one-s