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Commercial Loan Blog

Do You Have Enough Experience to Get an Apartment Loan?

August 13, 2014

One of the questions you will be asked in inquiring about getting an apartment loan is how much experience you have in apartment complex ownership. For many types of situations involving multifamily loans, you are required to have experience in multifamily ownership. In some multifamily loan situations you are not required to have experience in multifamily ownership.

First, it’s important to know what the definition of “experience” is in multifamily property ownership. The definition is that you currently own one or more multifamily properties of 5 or more... Read More

Should I Always Go With The Lowest Rate Apartment Loans?

August 5, 2014

The answer is no. Why?

  • Dishonest loan source representatives will give you a lower rate to hook you in to work with them. If they cannot honor that rate, they will say, “Well, rates went up.” They will think you don’t know the difference and bank on their dishonesty at your expense.

    • Also, when you find one dishonesty in a loan source representative, other dishonesties tend to be connected like strong magnets clung together. Thus, the dishonest loan source representative in the above example may also not deliver on the promise to get... Read More

    Getting Commercial Apartment Loans: Who Wins – The Tortoise or the Hare?

    July 29, 2014

    Aesop’s Fable – The Tortoise and the Hare was written thousands of years ago. It has stood the test of time and we all know the ending: the tortoise beats the hare. Believe it or not, this is a perfect analogy for winning in the arena of getting commercial properties and commercial apartment loans.

    Why does the tortoise beat the hare? Because if you apply this fable to life, the fable is not about one race, but many.

    Let’s look at the example of how people handle their finances in acquiring homes, cars, computers, vacations, etc. Each acquisition is a... Read More

    Are Bridge Apartment Loans Expensive?

    July 23, 2014

    The question, “Are Bridge Apartment Loans Expensive” is a very good and important question. Why? Because if you do not have strong knowledge and strong experience getting a bridge loan, you could lose a lot of money, lose a lot of time, and gain extreme stress.

    If you are very knowledgeable and have much experience in purchasing bridge apartment loans, you have the ability to make good money, save time, and have a positive bridge apartment loan experience.

    Bridge apartment loans and other types of bridge commercial loans are an advanced loan strategy and... Read More

    Build Your Wealth Before Getting a Commercial Mortgage

    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.

    This experienced apartment complex investor, owning quite a few apartment complexes, has spread himself too thin... Read More

    Am I Experienced Enough to Get a Multifamily 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.

    But, because of your lack of... Read More

    Should I Get an Apartment Loan for a Complex in Another State?

    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.

    The key word is experience. Furthermore, it’s having experience in the area of that state outside of where you live – that you own a number of successfully run multifamily properties in that area. Thus a commercial loan... Read More

    Student Housing Loans

    June 24, 2014

    Student housing loans are a specialty that not all commercial lenders prefer. Although they are a type of multifamily housing loan they differ from typical loans on apartment complexes. Student housing loans are not as favored by lenders for the following reasons:

  • They are most often rented by the bed. Although they are in apartment buildings that are comprised of mostly 2 to 4 bedroom units, the leases are usually to individual students. Lenders prefer it when one strong tenant with good credit signs the lease.
  • Students are more likely to have... Read More

    • Choosing the Right Lender for an Apartment Loan

    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.

    The strongest argument the writer of this blog can find to justify due diligence for a commercial loan, residential... Read More

    Getting an Apartment Loan – How Much to Invest?

    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.

    ... Read More

    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... Read More

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