Qualifying for Apartment Financing

Published January 6, 2012 

A number of our clients have wondered when an apartment bridge loan is necessary.

First, it’s important to define what a bridge loan is, for those of you not familiar with bridge loan financing. A bridge loan is a short-term loan that helps you secure financing for a property when the property doesn’t qualify for permanent multifamily financing. The purpose of getting the bridge loan is to have time to improve the property in order that you qualify for permanent apartment financing.

Published January 6, 2012 

What criteria is needed to qualify for apartment financing on rehab deals?

Published January 14, 2012 

Published January 14, 2012

Prior to 2008, which we could refer to as the “good old days,” it was so much easier to qualify for a multifamily loan. Now don’t get discouraged, apartment loans are being done every day. It’s just that the loan standards for multifamily financing have become more demanding. And the key is that the borrower’s strengths are now as important, if not more important, than the required strengths for the property.

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

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

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 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?