Apartment building loan sources are numerous to say the very least. It can seem impossible to find the right source of funding for your business, but we are here to help with the process. A typical apartment building loan (also known as multifamily) is funding for the purchase or refinancing of a building usually with no less than 5 units. Before speaking with anyone it is helpful to have a "yes" or "no" answer to the following questions:
- Is the property fully leased (about 95%)?
- Do you want to borrow more than 80% of today’s value?
- Are you willing to re-finance the property or are you planning on selling
in the next 3 years or so?
- Will you accept a loan with a large prepayment penalty?
- Do you expect leasing activity in the building over the next 3 years
(either from existing or new tenants) to increase the property value
greater than 25%?
- If the property value is increasing more than 25% over the next 3 years,
will the loan request today be 75% or less of the increased value?
- Will 50% of the building leases expire in any one of the next 3 years?
- Are you installing land infrastructure, gutting the building or converting the use?
- Is the property value greater than $10 million?
Have your answers for these questions ready when contacting any of the funding sources we match you with in our free directory. You will only be matched with lenders whose criteria your business meets, so no more wasting your time with lenders who you will not be able to qualify for.