Published April 5, 2012
Why is it important to form a recession-proof strategy for acquiring your apartment loans? Because since the recession hit, many more loans are turned down. It’s tougher for a borrower to qualify in this economy. At Apartment Loan Store and Business Loan Store, we’ve seen quite a few people who once would have qualified for an apartment loan but do not qualify today.
There is hope to this story. If you know the loan requirements for this recessionary period, form a strategy to implement them, and implement them, you can achieve your apartment loan dream.
The biggest problem in qualifying is that investors do not have enough liquidity and net worth. The amount of money needed can be substantial, depending on the value of the property as well as the loan to value. A second problem is the borrower having too low a credit score. Generally, the credit scores from the three bureaus need to average at least 680.
A third problem is the borrower lacking experience in owning apartment loans. This experience is defined as current ownership of one or more multifamily properties, each being a minimum of five units. It is important to note that some loan programs will allow you to acquire apartment loans when you do not have any multifamily experience.
There are two basic strategies that can help you acquire an apartment loan if you currently do not meet the qualifications.
1. Strategize and implement a plan that allows you to get the wealth needed to acquire an apartment loan.
2. Get a partner who has the finances and the experience. You will still need some money to put into the investment. However, the partner could have the majority investment.
Next week we will go into more detail on How to Get a Recession-Proof Strategy for Acquiring Your Apartment Loans.
Give us a call at 866-811-9515 to get a rate quote plus ask any questions. We are your A+ Better Business Bureau apartment loan provider.
By Bruce Painter, Marketing Director