Buying Apartment Properties

Published January 19, 2012 

Last week we covered part one of “The Borrowers Strengths Are Most Important to Qualify for a Multifamily Loan.” In getting multifamily financing, we shared five strengths needed to get your apartment loan. They are being strong in credit scores, liquidity, net worth, income, and a lender may require that you have multifamily experience (ownership of a multifamily complex of 5 or more units) to get an apartment loan.

Published January 21, 2012

Published January 28, 2012

Commercial loans have historically been made foremost to the property, whereas residential loans are made primarily to the borrower. For a commercial loan, the net operating income of the property is foremost in the commercial lender’s mind, then the condition and location of the property. However, since the recession started, the quality of the borrower is just as important as the merits of the property.

Published January 28, 2012

The last two weeks, we covered parts one and two of “The Borrowers Strengths Are Most Important to Qualify for an Apartment Loan.” In getting multifamily financing, we shared five strengths needed to get your apartment loan. They are being strong in credit scores, liquidity, net-worth, income, and a lender may require that you have multifamily experience (ownership of a multifamily complex of 5 or more units) to get an apartment loan.

Published February 4, 2012

In 1933, in the aftermath of the Great Depression, President Franklin D. Roosevelt established, with Congress, The Home Owners Mortgage Act by selling government bonds to lenders. The purpose was to help remedy high foreclosure rates and to make it possible for more people to own their own homes. It was mandated that these loans had to be fixed for 20 to 25 years and be fully amortizing (term and amortization match). Eventually this was pushed up to 30 years, with the idea that most people would work for 30 years and then retire with a paid-off home.

Published February 4, 2012

The last two weeks, we covered part one through three of “The Borrowers Strengths are Most Important to Qualify for an Apartment Loan.” In getting an apartment loan, we covered strengths needed. They are being strong in credit scores, liquidity, net worth, and a lender may require that you have multifamily experience (ownership of a multifamily complex of five or more units) to get an apartment loan.

Published February 11, 2012

If you have recently been turned down by your bank for a commercial real estate loan, don’t take it personally. Many banks today are simply not making commercial real estate loans to anyone. In most cases this is not because they do not have the money, but because they already have too much commercial real estate on their books, or because they want to play it safe and make less risky loans.

Published February 11, 2012

It is very important that you choose a good commercial loan broker to work with in acquiring an apartment loan.

Published February 17, 2012

If you are considering buying a commercial property as an investment and obtaining commercial financing, why not choose a commercial property type that will give you a much greater chance for success and also be easier to finance?

Let’s get right to the point. Having been a top producer of commercial loans for over 14 years, I can tell you that there are two commercial properties at the top of this food chain for obtaining commercial financing. They are apartment buildings and self-storage (also called mini-storage) units.

Why?

Published February 18, 2012

Last week, in the first part of “Best Commercial Loan Providers,” we covered some reasons it is important to choose a good commercial loan provider to work with in acquiring apartment loans. We also gave an example of what can happen when you choose an incompetent loan provider. We gave an example of an investor losing the purchase contract on an apartment building due to the inexperience of the lender.