Getting financing is a key part of buying an apartment building. It’s a big part of “where do I get the money”, which is probably preoccupying most of your thoughts going into a deal.
A lot of this can be solved with a good mortgage broker.
Your local bank may have a commercial mortgage loan officer and because of your familiarity with the bank and the staff there, you may be tempted to try and finance your transaction with them.
Tip: Resist the temptation. a) because they likely only have loan programs that apply to fully stabilized property, and b) because if you don’t qualify for the few programs they have they will say you can’t get financing for your deal.
Instead work with a commercial mortgage broker to finance your deal; ideally one with a “can do” attitude and creativity.
Commercial mortgage brokers have hundreds, often thousands of commercial mortgage programs to choose from, not just a few as with your local bank. Whatever the nature of the property you are buying, a commercial mortgage broker can find a loan that will fit both the property and you as the Buyer.
Obviously, they have a broad selection of loan products for already stabilized property. Read more…