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Apartment Buildings PDF Print E-mail

 

Apartment buildingApartment buildings are a multifamily property (5 or more units) with which everyone is familiar. Today, more and more people are renting apartments while fewer are buying houses. This too is a product of our recent recession. As a result, apartment buildings can be an excellent opportunity for a business owner or investor.

 

You have to do the same planning, research, analysis, and preparation for apartments as for other commercial property and you must meet the lender’s qualification criteria before you apply and get approved. Revenue and expenses are usually easy to predict and are stable over the long term. Multiple properties offer an excellent income potential for owners and investors, and the experience gained from operating one property can be extended to all of the properties. Lenders are fully aware of the excellent income potential of apartment properties, so generally it is easier to get a commercial loan to purchase apartments than other commercial properties. The lender will focus primarily on the apartment as the repayment source. Lenders will evaluate criteria such as the condition of the property, the age, the vacancy rate (lower rates may require more collateral or down payment), the amount of repairs or rehab needed, and the DSCR. Commercial loans for apartment buildings can be obtained for existing buildings or new properties.

 

Loan-to-value ratios of up to 80% are possible for apartment property. Loan terms are very flexible with 3 to 30 year terms at fixed rates. Variable rate loans are also available. Amortization periods can be up to 30 years, with no balloon payments (fully amortized loan).

 

World Net Capital I offers commercial loans for apartment property for purchases, new construction, cash outs, and refinancing with no application fees. We also provide loans for apartment properties with mixed use, such as a combination of apartments, offices, and any other income producing business. We can provide a fully-amortized apartment building loan with a fixed rate or variable rate with terms up to 30 years.

Last Updated on Wednesday, 11 September 2013 16:38
 
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