Question about how you handle loan covenants for multi-family syndications

Used to just skim the legal briefs and hope my attorney caught everything, but after a $15k penalty on a Dallas deal last quarter I learned to build a simple covenant tracking spreadsheet myself. Anyone else have a specific tool or system they swear by for monitoring those ratios?

3 comments

3 Comments

the_holly23d ago

Wait, hold up, a FIFTEEN THOUSAND DOLLAR penalty? That's insane. I almost choked on my coffee reading that. I mean I get being busy and trusting your lawyer but that's a hard lesson right there lol. I just use a really basic Excel workbook with conditional formatting that flags green, yellow, red. Nothing fancy but it saved me from a DSCR violation once.

caleb26223d ago

Blew right past my coffee and had to set the mug down honestly. Fifteen grand is the kind of number that makes you sit up straight and pay attention real fast. I feel for the person who got hit with it, because one bad month or a missed email chain can snowball into that kind of trouble before you even know what happened. Your Excel setup sounds way smarter than trusting a lawyer to remember everything, that's a cheap insurance policy right there.

murphy.linda15h ago

My old boss used to charge me 50 bucks every time I missed a calendar reminder, so I feel this hard. I started setting up Google alerts with keywords like "deadline" and "compliance" tied to my case numbers, and it helped catch a few things before they blew up. @the_holly your Excel setup sounds solid too, I actually stole a similar color coding trick for tracking my own filings. I mean, 15 grand is brutal but sometimes that kick in the pants is what makes you stop trusting everyone else and build your own failsafes.