Multifamily Utility Considerations for Investors

Multifamily Utility Considerations for Investors

Utilities; they may not be the sexiest part of your multifamily investing strategy-- but if you’re not thinking about them at all, you could be losing out on serious cash. That’s especially the case if you currently own an older property without submetering and/or if you currently include utilities in the price of your tenants’ rent.

Read More

How to Find Apartment Complexes for Sale

How to Find Apartment Complexes for Sale

If you’re reading this article, you probably already know that multifamily investing is an incredible way to build long-term wealth. In fact, there’s a good chance you already own one or more multifamily properties of your own. However, you’re might be struggling when it comes to finding your next investment property. Fortunately, we’ve put together this quick (yet comprehensive) guide to help you find the best property for your individual needs. 

Read More

Due Diligence for Apartment Investing

Due Diligence for Apartment Investing

Before you make the leap and purchase a multifamily property, you’ll need to do some homework first. In multifamily industry, this is referred to as “due diligence,” and often consists of hiring third-party service providers to inspect and/or provide reports on various parts of the property to analyze its suitability as an investment. 

Read More

Non-Recourse Loans

Non-Recourse Loans
A non-recourse loan on a commercial or multifamily property is a loan that does not require the personal guarantee of the borrower(s). To put it simply this increases investors/lender risk and reduces risk/liability to borrower(s).
Read More

Loan Ratios in Multifamily and Commercial Real Estate

Loan Ratios in Multifamily and Commercial Real Estate
So don't get too excited if your loan amount based on your LTC or your LTV looks above and beyond what you expected, because you are going to get the lesser of the two, and quite often the lesser of three or four ratios. Lenders are experts in risk mitigation, and that means they know how to manage leverage and loan amounts. 
Read More

Do You Need a Business Plan for Apartment Investing?

Do You Need a Business Plan for Apartment Investing?

While to some, apartment investing may sound like a passive hobby, for most successful real estate investors, it’s a highly involved business endeavor. So, if you want to give yourself the greatest chance of succeeding in the multifamily investing game, writing an effective business plan is key. No matter the size of your potential investment, a business plan can help clarify your goals, as well as bringing potential obstacles to your attention. 

Read More

Small Apartment Loans: The Best Options for Borrowers

Small Apartment Loans: The Best Options for Borrowers

While there’s nothing small about millions of dollars, in the multifamily finance industry, apartment loans ranging from $1 million to $7 million are generally considered to be ‘small’ loans. This isn’t to minimize the importance of these loans to the investment market-- simply to differentiate them from the $10, $20, and $30+ million loans that are often offered to larger institutional investors. In fact, in terms of loan origination, these ‘small loans’ are perhaps the fastest-growing segment of the multifamily financing market. 

Read More

2019 Apartment Industry Statistics: What You Need to Know

2019 Apartment Industry Statistics: What You Need to Know

If you’re planning to expand your multifamily investments this year, it’s important to have a good understanding of the current state of the industry. By doing so, you’ll be able to make more informed choices about where to invest, how to invest, and if you should invest at all. To help you gain a better appreciation of the apartment and multifamily market this year, we’ve provided some of the most essential apartment industry statistics below.

Read More

What are the Pros and Cons of Owning an Apartment Complex?

What are the Pros and Cons of Owning an Apartment Complex?

Investing in an apartment complex is one of the most time-tested ways to build wealth. In fact, multifamily ownership has an incredible array of benefits, including cash flow, the ability to finance properties with a limited amount of money down, and incredible tax benefits (just to name a few). However, apartment investing isn’t always sunshine and daisies; investors have to put in a lot of hard work to make sure their properties turn a profit.

Read More

Agency Loans for Multifamily Properties: What Borrowers Need to Know

Agency Loans for Multifamily Properties: What Borrowers Need to Know

If you’re interested in purchasing or refinancing a multifamily property, getting the right type of financing is key. Fortunately, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, also known as the ‘agencies,’ provide some of the best loan terms on the market. In fact, in 2018, the agencies issued more than $143 billion in multifamily loans, with Fannie Mae issuing more than $65 billion of loans and Freddie Mac issuing around $78 billion in multifamily financing. 

Read More

What are the Best Cities for Multifamily Investing?

What are the Best Cities for Multifamily Investing?

2018 was a great year for apartment investing-- and the first half of 2019 hasn’t been too bad, either. Though some are concerned about an increased supply of properties on the market, as well as potential increases in interest rates, now is still an incredible time to purchase a multifamily property. To help give you some ideas about where you might like to invest, we’ve listed some of the best markets in the U.S. to invest in apartment buildings in 2019 and beyond. 

Read More

Stop Before You Yield!

Stop Before You Yield!

If you’re new to the world of commercial real estate, the phrase yield maintenance prepayment penalty has likely never been part of your vocabulary before. If you are trying to acquire a loan for a multifamily property, however, you must be aware of your prepayment options so you can make correct financial decisions for the long run.

Read More

Freddie Mac SBL Program

Freddie Mac SBL Program

with this new program comes a new list of goodies and benefits for servicers and sellers. These benefits include a simplified pricing process, a simplified SBL insurance assessment, less documentation, a reduction in due diligence requirements and easier third party reporting. Did we mention, better pricing?

Read More

The Everything Guide to the 1031 Exchange For Apartments and Using Leverage to Bolster Returns

The Everything Guide to the 1031 Exchange For Apartments and Using Leverage to Bolster Returns

Essentially, in deferring capital gains tax obligations, investors are able to use the government’s due tax dollars for real estate investment and earn the return on that capital without having to pay anything to the government besides the actual tax obligation owed whenever, in the future, the investor chooses not to exercise his right to a 1031 exchange.

Read More

Going Green in Multifamily

Going Green in Multifamily

The Fannie Mae Multifamily Green Initiative was created to provide loans for properties investing in energy efficient, cost-cutting improvements and lifestyles. The Green Initiative program allows for an increase of 5% in loan proceeds as well as a 10 basis points (bps) reduction off the all-in interest rate. 

Read More

Raising Unsecured Debt In Israel: A Competitive Financing Alternative For U.S. Multifamily Developers

Raising Unsecured Debt In Israel: A Competitive Financing Alternative For U.S. Multifamily Developers

Israeli investors are seeing many U.S. commercial real estate companies and multifamily owners contemplating Israeli debt-based financing as an alternative avenue to obtain competitive capital. Prominent multifamily commercial real estate owners such as The Cornerstone Group, Copperline Partners, and The Related Companies are just a few of the firms with bonds currently being traded on the Tel Aviv Stock Exchange.

Read More