Due Diligence in Getting Apartment Loans
May 27, 2014
Recently on this blog, we posted an article about the importance of due diligence when it comes to selecting a company for your apartment loan. The article went into some detail on why due diligence is so important in selecting multifamily lenders, and how to do your due diligence in this key area of commercial loans.
How well you do your due diligence in selecting the right multifamily lender has a lot to do with the success of your multifamily loan, because the right lender will help you make more money as well as save you time. A poor-quality lender can cause you to lose money and time.
Today we will look at one specific and important detail that might be overlooked while doing your due diligence in choosing the right apartment lender for your loan.
It is usually assumed that if you use a bank or institution with a well-known and respected name, all the apartment lenders in that bank or institution are very good at doing apartment loans. This is not the case. There can be quite a few great apartment loan officers in such an institution, as well as a few that are underperforming and can cause you a lot of problems in the servicing of your multifamily loans.
Therefore it is essential that you do your due diligence and select a top loan officer, even in a well-known and respected institution. As covered by the recent blog post, do your due diligence on specific multifamily loan officers within that institution. Ask for several references you can call. When you get the names, call them, and be sure you talk with at least three or four of them. Also make sure that you ask specific, even penetrating, questions. If they are excited about the apartment lender and give specific details of what they like, this is a good sign that you have found a good commercial lender for your apartment loan.
In addition, it's a good practice to ask a higher-up officer in the institution to recommend a top performing apartment loan officer in the company. This can be a powerful way to help you select an excellent commercial loan officer for your apartment loans.
I am available to talk at 214-695-7310. You can also email me at bruce@businessloanstore.com with any questions and for your multifamily loan needs.
To find out more about our loan products and rates, go to apartmentloanstore.com or businessloanstore.com.
Bruce Painter, Director of Marketing
Business Loan Store