Apartment Loans

July 15, 2014

This applies strongly to the experienced apartment complex investor as well as the inexperienced apartment complex investor.

You may ask why this applies strongly to the experienced apartment complex investor.

The answer is simple and is best presented in the story of what many commercial lenders experience: The experienced investor applies for a commercial mortgage and is declined because of not having enough cash to do the loan.

July 8, 2014

The answer is that it depends.

There are two factors in answering this question correctly:

Factor One – The banker decides if you have enough experience to get an apartment loan.

Factor Two – You decide.

Here’s an example of where factor two comes into play: Let’s say that you have no experience in ownership of multifamily properties, yet you have great wealth. The bank decides there is very little risk in lending the money to you because of your wealth. You end up purchasing a 10 unit apartment building.

June 25, 2014

The answer is that it depends. We find that a good number of people have great difficulties in getting apartment loans in other states – that is because so many apartment investors don’t qualify for a multifamily loan in another state. On the other hand there are individuals who do qualify and can get an apartment loan in another state.

June 10, 2014

Over the past weeks, we have shared with you a series of blogs for making sure you do your due diligence when you are choosing a lender for your apartment loans. This holds true for choosing a lender for any type of loan – commercial loans, residential loans, business loans, etc.

In a nut shell, there is a wide variance in quality of apartment lenders and it is essential that you check them out, especially through talking with references.

June 4, 2014

Many apartment property investors in their acquisition of apartment loans, end up spreading themselves too thin financially. They put too high a proportion of their finances into one or more apartment buildings. This is especially true of those new to getting commercial loans.

Their mindset is to purchase as big of an apartment complex as possible in order to make as much money as possible. They see that apartment complex investing is a highly leveraged investment strategy and they want to throw as much money as possible into the biggest loan possible.

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.

May 21, 2014

Doing due diligence on multifamily lenders for multifamily loans has been a topic of this blog a number of times. Today, we are going to look at a very good way to help you do due diligence in your quest for apartment lenders.

Why? Like anything else in business, you want a company you can trust to do the job you are paying for. And as in anything else, service runs the gamut between superior multifamily lenders and bad multifamily lenders.

May 15, 2014

May 12, 2014

A commercial lender makes loans to commercial real estate investors or to a business, but not to an individual. Loans made to individuals are called consumer loans. Real estate loans made to individuals for one to four residential units are consumer loans called residential loans. Commercial lenders usually make loans on properties with five units or more. In most cases, commercial lenders make loans to properties that are zoned commercial.

May 6, 2014

Quite a few commercial loan investors will, in time, come across the idea of getting a bridge loan or hard money loan. In this article we will focus on bridge and hard money apartment loans.

An important question to ask yourself is, “Should I get into bridge and hard money apartment financing?”

First, you need to be sure you know what bridge and hard money apartment financing is used for. Here are some reasons people get bridge and hard money apartment financing: