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Apartment Loans

Why are Multifamily Loans Easier Than Commercial Loans?

July 21, 2015

It’s simple – less moving parts. An analogy is the difference between the construction of a lawn mower engine and the construction of an automobile engine.

For example, let’s look at the difference between getting a loan for an apartment complex and a retail mall. For an apartment complex loan you have one borrower for the property. For the retail mall, let’s say that you have 35 tenants.

Low Rates: Always the Most Important Feature? Part 2

June 10, 2015

Going for the lowest rate could be a good practice generally.  But, as we covered in the previous blog, there are quite a few lenders who quote a rate too low to hook you into working with them. Later on when you are well into the loan process, they give you a higher rate than originally quoted. They may tell you that rates have gone up, but the problem is they changed the rate artificially to try to get your business.

This most recent past article also covered what you can do to help prevent this from happening.

Low Rates: Always the Most Important Feature?

No.

Why? Even though there are arguments lenders could give you that you should go with them because they are quoting you a low rate at the inception of the loan process – the low rate quite possibly is deceptive.

A lender can quote you anything they want to quote you at the beginning of the loan process. Because you are not trained in commercial loans, whatever they quote you, you very well could believe.

What Are Good Motives to Want to Become a Commercial Lender?

May 29, 2015

This is an important question to the writer of this blog because the motives having to do with why a commercial lender is in the commercial loan business is connected to the effectiveness of that lender.

I believe this would be a good question to ask a commercial lender you are interviewing to see if you want that lender to represent you. It is an unusual question to ask, but it could give insight into the quality of the commercial loan person as well as the commercial loan company.

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