Multifamily Finance Blog
Apartment and commercial real estate finance has its own language. Stay up to date with CRE terminologies, Q&A, interviews, FAQ, definitions, trends, opinions, and more.
Section 8 Inspections: The Rules and Requirements Landlords Need to Know in 2025
Don't let your upcoming Section 8 inspection worry you. Although they cover many areas, our comprehensive guide walks you through everything you need to pass with flying colors.
The 4 Best Multifamily Loans in 2025
Which multifamily loan is best depends greatly on your unique situation, but we outline four top contenders for the year.
The Best 15 Multifamily Property Managers of 2024: What Sets Them Apart
Choosing the right property management company for your apartment building is critical to your investment's success. Learn who is our top property management company of 2024.
The Top 15 HUD Multifamily Lenders of 2024
Find out which 15 HUD lenders provided the highest volume of new loans in the past fiscal year with our comprehensive ranking.
How to Choose the Best Multifamily Insurer for Your Apartment Building
Just because an insurer is ranked highly in the industry doesn't mean they're right for you. Learn what to look for and look into in choosing your insurance company for your multifamily property.
How to Find Multifamily Properties for Sale in April 2025
Learn how to find multifamily properties for sale. Go beyond MLS listings with our comprehensive guide.
General Liability Insurance for Multifamily Construction: What You Should Know
For multifamily construction, there are a number of additional things to consider when getting general liability insurance coverage. Here's what you need to know.
Umbrella and Excess Liability Coverage for Multifamily Construction
Sometimes, standard policy limits are simply not enough. Find out why umbrella or excess liability coverage could be the right thing for your multifamily development.
Understand HOA Insurance for Multifamily Properties
Most multifamily properties will never need homeowners association insurance, but for the several types that do, it's important to understand your options (and requirements).
Pollution Liability Insurance for Multifamily Construction Projects
Both prevention and insurance are important for making sure your multifamily construction project doesn't leave a negative mark on the neighborhood. Learn what you need to know.
How Professional Liability Insurance Protects Your Multifamily Development
You need to make sure the architects, engineers, general contractors, and others that you're working with on your multifamily construction project are covered to ensure your development's in good hands.
Workers' Compensation Insurance: Protect Your Multifamily Construction Workforce
Workers' compensation insurance plays a really important role in ensuring your multifamily development goes off without a hitch. Learn what you need to know.
Builder's Risk Insurance: Protecting Your Multifamily Construction Project
Builder's risk insurance covers your multifamily development's building and materials during construction. It's important to get right: Here's how you do it.
How to Insure Your Multifamily Construction Project
Insuring a multifamily construction project can be challenging (and costly). Learn what you need to think about with our comprehensive guide.
The State of the Multifamily Market in 2024
Many challenges await investors. But that doesn’t mean there aren’t excellent multifamily investment opportunities out there. Here’s what you need to know.
How Location Affects Your Multifamily Property Insurance Costs
It may not be fair, but your property's location plays a massive role in determining how much you pay for your multifamily insurance policy.
Beyond Basics: Specialized Multifamily Insurance Options
Learn about various types of specialized multifamily insurance types that are highly useful for properties with specific characteristics.
Protecting Your Apartment Complex With the Right Property Insurance
Your apartment complex insurance policy may seem straightforward, but there are some things you'll need to know to ensure you're protected.
Safeguard Your Cash Flow: Loss of Income Insurance for Multifamily Investors
Multifamily cash flows aren't as predictable as they may seem. Loss of income insurance can help keep your apartment building operating profitably, even should the worst happen.
Why Liability Insurance Is a Must-Have for Multifamily Investors
Something as simple as a slip and fall could throw off your investment returns — and even dig into your personal finances. Liability insurance protects you.
Understanding Insurance for Your Multifamily Property
Understand the various types of apartment building insurance, and learn what to consider when finding a policy to protect your investment.
How Fannie Mae Loans Work for CHDCs
Explore the benefits and eligibility of Fannie Mae loans for CHDCs and how to navigate the financing landscape for affordable housing projects.
Top 10 Multifamily Lenders of 2024
Though there's been falling activity across the multifamily sector in the past year, our list highlights 10 top multifamily lenders worth looking at for your next deal.
Community Housing Development Corporations and Multifamily Loans
Explore the essential guide for CHDCs seeking to explore their multifamily financing options. Get actionable insights tailored for community housing development success.
Dallas Multifamily’s Path to Stabilization in 2024
After a difficult 2023 with record deliveries, Dallas may not be on every investor's list, but there are many signs that this year and next promise a return to normal.
Jacksonville Multifamily: Your 2024 Outlook
While falling rents are likely to put off many investors, there are hidden gems to be found in Jacksonville's multifamily market in 2024.
What's Next for Houston Multifamily?
The city's multifamily sector has a lot of challenges ahead of it. But for those who know where to look, opportunities await.
The Best 3 Multifamily Loans for Affordable Housing in 2025
Discover the three best multifamily financing options for affordable housing in 2025, including the HUD 223(f), Fannie Mae Standard FHA Risk Sharing Execution, and USDA 538 loans.
How I Started Investing in Multifamily Syndications, Part 4: Bad News in the Midwest
First-time investor Jeff Hamann finds what looks like the perfect multifamily opportunity, but then it all falls apart thanks to a last-minute surprise.
How I Started Investing in Multifamily Syndications, Part 3: Tax Implications
Learn alongside first-time investor Jeff Hamann as he hits a tax roadblock on investing in his first multifamily syndication.
Capital Gains Taxes for Multifamily and Commercial Real Estate Investors
Having an effective tax strategy is critical to your success as a multifamily investor. Otherwise, you could see a large portion of your profits consumed by an outsized tax bill.
How I Started Investing in Multifamily Syndications, Part 2: Offering Memorandums
Learn alongside first-time investor Jeff Hamann as he finds his way around various offering memorandums while searching for the right multifamily syndication.
How I Started Investing in Multifamily Syndications: Part 1
Experienced multifamily analyst (but newbie multifamily investor) Jeff Hamann shares how he got his start in syndicated investments as an LP, along with his process for finding opportunities.
Internal Rate of Return and Multifamily Real Estate Development
The internal rate of return is used to measure an investment’s performance based on the percentage rate earned on each dollar invested for each period it is invested.
What Are the Pros and Cons of Owning an Apartment Complex?
An apartment complex can be a very profitable, albeit challenging, investment. There are some surprising advantages you might not initially link to owning multifamily.
Section 8 Investing: A Comprehensive Guide
Section 8 properties can be remarkably good investment opportunities, especially during an economic downturn. Find out everything you need to know.
Multifamily Market Shift: From 2021's Boom to 2023's Stabilization
Explore the transition in multifamily trends from 2021's peak growth to 2023's return to pre-pandemic patterns and its implications for investors.
Beyond the City: The Appeal of Suburban Multifamily
With urban pricing near all-time highs, let's explore the many advantages suburban apartment buildings have, from potential rent growth to appreciation.
Active vs. Passive Multifamily Investing: Which Is Best for Me?
Different investment styles suit different people. Read our comparison and determine your best way forward.
The Chicago Multifamily Market: Looking to Late 2023
Chicago's market has a lot going for it, even as the rest of the nation's metros see rent growth slowing to a crawl.
Los Angeles: A 2023 Multifamily Market Update
Based on a number of multifamily market reports, legislative changes, and the influence of rising interest rates, learn how to invest in Los Angeles in 2023.
How to Choose a Multifamily Market (or Submarket)
Learn which five metrics you need to know to make a wise investment anywhere across the country.
Top 5 Florida Multifamily Markets for Investment in 2023
Analyzing rent trends, employment data, and population growth, we've determined the five multifamily markets with the best potential upside for investors in 2023.
The Effects of Texas's Multifamily Development
Explore the evolving landscape of Texas's multifamily market, uncovering the strategic implications of construction trends and their ripple effects on investment opportunities.
Fannie Mae Pushes Major Small Loan Changes
The Small Loan program now has a significantly higher loan maximum and relaxed requirements on how ‘local’ an investor needs to be.
When to Approach Lenders for Construction Financing: A Developer’s Guide
In multifamily development, timing is everything. Find out the best times to approach a lender to secure financing for your next project.
Top 10 Multifamily Markets in Late 2023
Our list of markets large and small show where you can find some of the best apartment investment opportunities, despite the property sector's challenges.
Apartment Construction Costs in 2025: Calculator & Investor Guide
Easily understand potential multifamily construction costs in 2025 with our calculator and guide, whether you're building a four- or 20-units apartment complex.
Multifamily Loan Size: A Practical Guide for Property Investors
Unlock the secrets to determining the optimal loan size for your multifamily property investment with this comprehensive guide.
Assessing Your Need for a Multifamily Refi in 2023
Even though interest rates are higher than they've been in a good long while, there are many signs that point to further hikes. Learn if a refinance could be the right move for your apartment complex.
How Leverage and DSCR Affect Multifamily Loans
Two of the most commonly utilized metrics in multifamily finance, DSCR and LTV, play a huge role in determining why you get the terms you get.
How to Assemble the Right Multifamily Development Team
If you’re a first-time apartment building developer, getting an experienced, high-performing team around you is essential to success.
Start Small: The Best Choice for New Multifamily Developers
Discover why starting small could be your winning strategy for getting into multifamily development, turning humble beginnings into larger successes with our guide.
How to Get Started on Your 1st Multifamily Development
Developing an apartment building is a complicated task. Learn what you need to know before starting on your first or next project.
How to Raise Multifamily Rents: A Step-by-Step Guide
Our comprehensive landlord guide outlines a balanced approach to apartment rent increases, ensuring profitability while maintaining tenant satisfaction.
3 Reasons Why HUD Multifamily Loans Are So Popular Today
Thanks to a series of rapid interest rate increases from the Fed, borrowers have started seeking out more and more FHA multifamily loans, which carry some of the lowest rates available.
Navigating Luxury Multifamily: A Guide to Class A Investing
Make informed decisions on your next Class A multifamily investment with our guide, covering key characteristics, attractive markets, and emerging trends.
How to Improve Risk Management for Your Apartment Building
Risk reduction is essential in owning and operating a multifamily property. Read our guide to find out everything you need to know.
8 Ways to Lower Your Apartment Building Insurance Costs
Reduce your premiums by taking these four steps with your multifamily property and another four you can take when you set up your policy.
5 Key Factors Driving Inland Empire Multifamily Growth in 2023
Discover the top factors propelling the Inland Empire's multifamily market growth, from strong population growth and housing demand to the region's strategic location and booming industrial sector.
The Most Underrated Midwestern Multifamily Market of 2023
In examining nine major metros, one state's capital city stands apart as a place for great investment opportunities.
Why Smaller, "Boutique" Apartment Buildings Can Be Great Investments
While larger, 50+ unit properties may get a lot of attention, smaller apartment buildings can be fantastic investment opportunities for all kinds of investors. Find out why.
6 Ways AI Is Revolutionizing Apartment Investing
From automating property management to making better, more informed investment decisions, artificial intelligence has untold applications in multifamily real estate.
How to Navigate Multifamily Tax Credits
The wide range of tax incentives for multifamily properties are complicated, but they can provide incredible opportunities for investors and developers.
6 Ways to Set Your Apartment Rents
Learn how to set rental rates for your multifamily property by examining these six key data points.
Multifamily Utility Considerations for Investors
Learn about the best utility billing methods for multifamily investors, including submetering and RUBS. Also explore other cost-saving strategies.
What Is a Bankruptcy-Remote Entity?
Bankruptcy-remote entities, or BREs, are very common in apartment investing. Find out what you need to know.
Getting a Multifamily Refinance: Your 2025 Guide
Our multifamily refinancing guide gets you everything you need to get started on improving your financing terms.
Multifamily Outlook in 2023: The Sky Isn't Falling
Multifamily rent growth may be slowing, but there are many reasons to be optimistic — albeit cautious — about the year ahead.
3 Tips for Hard Money Loans for Real Estate
If you don't want to put down a large sum of money upfront to buy an apartment building, a hard money loan can be a good option — though it does have drawbacks.
Top 10 Fannie Mae Multifamily Lenders of 2023
More than $69 billion in Fannie Mae multifamily loans closed in 2022. Find out who the top lenders were.
4 Steps to Increase Your Apartment Building's Occupancy
Use these four common-sense approaches to fill your empty apartments and keep your current residents in place.
The Top 5 Markets for Multifamily Rent Growth in 2023
Don't expect the same level of growth as in the past two years — but there are several standout places to invest in apartment buildings in 2023.
5 Best Multifamily Investment Markets of 2023 by Growing Property Values
Diverse job markets, strong population growth, and favorable locations make these markets well worth exploring for apartment investors.
Top 10 Multifamily Lenders of 2023
While the best multifamily lender for you depends on a wide range of factors, find out more about the 10 most active from last year.
The Best Ways to Buy a Multifamily Property With No Money: 7 Options
Apartment buildings are expensive, but there are ways to get into the sector that won't break the bank. Find out seven techniques in our guide.
Your Guide to HUD Mortgage Insurance Premiums
If you have a HUD multifamily loan or are considering one, you need to know about HUD MIPs. Find out current MIPs for HUD loans in our guide.
The Pros of Investing in Apartments Early
Looking for your first multifamily investment property? It pays to act sooner than later. Find out more in our guide.
Why the CPI Doesn't Capture Rents Accurately
The Consumer Price Index has many uses, but its reliance on significantly lagged housing data regularly causes headaches for those in the multifamily industry.
What Is a Good Cap Rate for Multifamily Properties?
Although an imperfect tool, understanding cap rates for your apartment investment is a key way of measuring potential upsides and risks.
How to Value Multifamily Property
Understanding what goes into the valuation of your apartment building can help you improve your return on investment and assess what financing options work best for you.
What Is Multifamily Finance? A Beginner's Guide
Read our comprehensive guide to find out what you need to know as an apartment investor to get the best out of your multifamily loan.
Single Family vs. Multifamily Investing: A Comparative Guide
Investment in single-family homes and multifamily properties can be lucrative. Not sure where to begin? Read our guide breaking down the pros and cons of each.
What HUD Clearing Its Backlog Means for Multifamily Investing
HUD multifamily loans, some of the most competitive financing options on the market are now able to do more, faster.
How DSCR Loans Are Used in Multifamily Investing
Loans based solely on a property’s debt service coverage ratio can provide fast capital, but will this work for your multifamily portfolio? Find out more on our blog.
5 Ways to Find the Best Multifamily Refinance in a Recession
Refinancing an apartment building during a recession could boost your cash flows. Find out five ways to get the right loan.
How Non-Recourse Loans Can Benefit Multifamily Investors
Non-recourse loans are a type of financing that is often used in commercial real estate. But what exactly is a non-recourse loan? And when should multifamily real estate investors use one?
Bank vs. Credit Union Multifamily Loans: Which Is Best?
Weighing the pros and cons of getting an apartment building loan through a bank or credit union? Check out the differences here.
Behind Freddie Mac's Expanded SBL Link Loan
The program update allows financing for small, non-contiguous buildings in any market nationwide, provided the portfolio has at least 10 units. Find out more.
Top 10 Metros With the Largest Housing Shortages
While investors and developers in these metros are already working to add apartments to an extent, good opportunities exist — even in a recession.
Why Multifamily Is Safe During a Recession
While there are no absolutes in this economy, apartment properties are some of the safest investments out there. Find out why.
What Is Amortization?
Amortization is the process of spreading out a loan into a series of fixed payments over time, where each payment is applied to both the principal of the loan and the interest.
Top 5 Markets for Multifamily Investment Growth
In this article, we analyzed the top multifamily markets for investment growth in the 12 months ending in September, using CBRE data.
5 Myths about HUD-Insured Multifamily Loans
What do you know about FHA-backed loans for apartment buildings? This article dispels five of the most common myths about HUD multifamily loans.
Why Invest in Manufactured Housing Communities
Manufactured homes are affordable, fast to construct, and regarded as recession proof. Find out why.
The 5 Best Ways to Avoid a Balloon Payment
Seeing a commercial loan balloon payment on the horizon can be stressful, especially if you don’t have a clear plan. Find out the five best ways to handle balloon payments.
How to Renovate Your Apartment Complex
Our comprehensive guide walks you through five critical questions to ask yourself as you plan your property-wide apartment renovation project.
4 Considerations Investors Should Have Before Using a Bridge Loan
Bridge loans can be an incredibly helpful tool for multifamily investors, providing quick access to short-term capital when needed — but here are four important things to consider before using one.
Top 5 Financing Options for Senior Housing Facilities
In this article, we detail the most common loan programs available for financing senior housing acquisitions, constructions, or rehabilitation.
Your Guide to Cross Collateralization in Multifamily Real Estate
Is taking a cross-collateralized loan in your best interest? Check out the main pros and cons in our short guide.
Janover Closes Fannie Mae® Small Loan for California Apartments
The eight-unit property refinanced through the Janover platform with a non-recourse, 10-year, fixed-rate loan.
What Is Effective Gross Income?
Effective gross income is an investment property’s potential rental income along with any other sources of income, minus any vacancy, credit, and collection losses.
5 Real Estate Exit Strategies for Multifamily Investors
A multifamily exit strategy allows investors to have a timeline for their investments and helps them maximize their profits when they eventually sell. Here are five strategies to consider.
What’s the Difference Between Fannie Mae® DUS and Fannie Mae® Small?
Our quick reference guide breaks down the key differences between Fannie Mae’s Small Loans and DUS programs.
The Benefits and Risks of Interest-Only Loans in Multifamily Real Estate
Interest-only loans can help commercial real estate investors free up cash in the short term, due to lower monthly payments during the interest-only period.
What Is the Difference Between the Freddie Mac Small Balance Loan and the Fannie Mae Small Loan?
Compare the country’s leading popular multifamily financing options under $8 million with our handy guide. While they share much in common, some key differences could make one more attractive to certain investors.
Top 5 Small Markets for Multifamily Investing in 2022
Amid rising interest rates and a looming recession, these tertiary markets could be the optimal place for your next multifamily investment.
The Benefits of Fixed-Rate Loans
Fixed-rate loans have the power to shield investors from rising interest rates. Learn how they accomplish this and other key benefits that fixed rate financing offers to borrowers.
Who Are the Top Affordable Housing Developers in 2022?
Take a detailed look at the top companies adding much-needed affordable housing across the U.S. in this year’s ranking.
Should You Sell or Refinance Your Multifamily Property?
As investors shift their strategies toward a longer-term horizon, holding properties and refinancing into a permanent loan is the most compelling investment option. Here’s why.
Despite rising interest rates, Janover data reveals steady stream of inquiries for commercial financing
Year-to-date through August, Janover received more than $25.5 billion in multifamily loan inquiries, with demand for construction financing representing 47% of all requests.
Replacement Reserves in Multifamily Real Estate
Replacement reserves are funds that are set aside for the periodic maintenance or replacement of a property’s structural elements and systems that wear out faster than the building itself.
Top 5 Markets for Multifamily Investment in 2022
With rent growth beginning to decelerate in many markets, where is the best place to deploy your capital for your next apartment property?
Top 10 Multifamily Developers of 2022
Multifamily starts experienced a 22.1% increase, climbing to 460,000 units, a level not seen since 1986, according to the NMHC.
Why You Should Refinance Your Multifamily Property in 2025
Refinancing an investment property can help you lower your rates or tap into your equity at an ideal time.
What Is Bridge-to-HUD Financing?
Multifamily investors can benefit from using a short-term bridge loan while applying for longer-term HUD financing.
The Top 15 Multifamily Property Managers of 2022
Take a closer look at the top 15 multifamily management companies of 2022, which manage a combined 2.3 million units across the U.S.
JV Breaks Ground on 350-Unit Atlanta Luxury Development
The Arts District project joins the more than 26,000 units under construction in the metro at the end of the first quarter.
Vesper Holdings JV Buys Tampa Student Housing Community
The firm acquired the 444-bed community in a partnership with Fortress Investment Group.
Top 4 Qualities to Look for in a Property Management Company
When looking for the right property management company for a multifamily asset, these are four characteristics investors should keep an eye out for.
Examining Gross Rent Multiplier as an Investment Tool
Here’s a breakdown of how the gross rent multiplier can help determine whether it’s worth pursuing an investment.
Understanding REITs and Mutual Funds: Differences, Similarities
These two types of investment share many similarities, but there are key distinctions between them.
LCOR, Madison Secure $87M in Financing for NJ Property
The joint venture received a seven-year, floating-rate loan from PGIM Real Estate.
A Mid-Year Reflection on U.S. Capital Markets Trends
Industry experts predicted a strong year for commercial real estate investment and lending, but volatile market conditions will likely slow down activity in the coming months.
Miami Opportunity Zone Development Receives $61M Financing
Walker & Dunlop arranged the loan through HUD’s 221(d)(4) program.
The Pros and Cons of Multifamily Investing
Increased cash flow is a major benefit, but high property prices might make it hard for investors to enter the multifamily market.
Advantages and Disadvantages of Multifamily Syndication
Learn about the benefits and drawbacks facing investors regarding multifamily syndication.
Understanding CMBS Tranches
Commercial mortgage-backed securities are often split into different tiers based on the different levels of risk and return. These tiers are known as tranches. This article explores the basics of CMBS tranches.
How Millennials Move the Single-Family Build-To-Rent Housing Market
Popular Millennial destinations across the Sun Belt recorded the highest demand for build-to-rent single-family homes.
Quinn Residences Grows Portfolio With 820 BTR Homes
The company has expanded its presence in Florida, Georgia, and North Carolina, also making its first acquisition in Tennessee.
Early Considerations for First-Time Multifamily Investors
In this article we examine the many important considerations investors should make before diving head first into the multifamily investment market.
Coastal Ridge, Goldman Sachs Buy Arizona Student Housing Community
Coastal Ridge will manage the 448-bed property in Flagstaff, Ariz.
Understanding Different Multifamily Investment Types
Core, core plus, value-add, and opportunistic investment opportunities have different levels of risk and rates of return.
How Tech Workers Shape the San Francisco Bay Area’s Housing Market
The region’s multifamily market recorded strong gains as tech workers continued to return to the region’s urban centers.
Are Rust Belt Multifamily Markets Making a Comeback?
Although the region may often be associated with decay, several key markets are experiencing an economic revival, driving multi-housing sector growth.
Westmount Buys Suburban Orlando Property in $62M Sale
In a deal arranged by Berkadia, Aspen Square Management sold The Lexington at Winter Park to Texas-based Westmount Realty Capital for $62 million.
A Close-Up on Different Types of LEED Evaluation
Since its widespread adoption, LEED Certification Review now exists for both residential and commercial project types.
Phoenix: A Multifamily Investment Hotspot
After a record-setting 2021, the Phoenix multifamily market continues to heat up based on key market trends.
Cortland Grabs $1B D.C. Multifamily Portfolio
The investor closed on two acquisitions in Arlington, Va., with two additional properties trading soon. The full portfolio includes more than 1,500 units.
The Investment Upside to Affordable Housing
Even as much of the focus remains on luxury rental properties, some investors are getting more and more into affordable housing. Here are three reasons why.
Step-Down Prepayment Penalties in Commercial Real Estate
A step-down, declining, or graduated prepayment penalty is a straightforward declining payment schedule based on the remaining balance at prepayment combined with the amount of time passed since the loan’s origination — or the last rate reset.
Fed Pushes Interest Rates Up by 50 BPS
The Federal Reserve announced an interest rate increase of 0.50% in the ongoing struggle against rising inflation.
What Amenities Do Apartment Renters Really Want?
Learn about five common amenities available in today’s apartment communities that can set your property apart from the crowd.
Top 5 Reasons to Invest in Austin's Multifamily Market
The multifamily market has been on fire for the past few years, but the Lone Star State’s capital shows few signs of stopping. Here are five considerations for investing in the Austin multifamily market.
Benefits of Adding an Affordability Component to a Multifamily Investment
Learn the benefits of investing in multifamily properties with an affordability component.
What is the National Multifamily Housing Council (NMHC)?
The NMHC is an active public policy group that donates to candidates that support the multifamily housing industry while advocating for a variety of policies, including the expansion of the affordable housing supply in the U.S.
Recourse vs. Non-Recourse Commercial Loans
Non-recourse loans have lower risk to the borrower, but typically these loans have higher costs. Understand which type of loan works best for you with our guide.
How Debt Service Coverage Ratio Is Used in Multifamily Finance
The debt service coverage ratio (DSCR) is calculated by dividing the net operating income (NOI) by the entity's annual debt service.
The Top 10 Multifamily Law Firms in 2021
In today’s world, contracts have never been more complex and litigation has never been more common. For multifamily investors, developers, this means that acquiring quality legal counsel isn’t just a luxury-- it’s a necessity. To help you better understand your options when it comes to real estate lawyers with specific experience in multifamily real estate, we’ve compiled a list of the top 10 multifamily real estate law firms in 2019.
The Top 15 Multifamily Property Managers of 2021
When it comes to owning or investing in multifamily real estate, hiring an effective and competent property management company is key. While there are many firms on the market, the industry is dominated by a group of major players. Check out our list.
SOFR: The New Replacement for LIBOR
For decades, the basis of the interest rates for loans— particularly for commercial real estate loans, has been the London Interbank Offered Rate, more commonly known as LIBOR. In essence, LIBOR is the rate which banks charge each other for short-term loans. However, LIBOR is rapidly being phased out by the Secured Overnight Financing Rate, or SOFR. By 2022, LIBOR will have been completely replaced, as major banks have no longer agreed to submit rates past that point in time.
Is Yield Maintenance Right for You?
A yield maintenance prepayment penalty guarantees that the lender will attain the same yield on the loan, even if it gets paid off before the scheduled maturity date.
What Is ClickPay and How Is It Used?
ClickPay allows property owners and managers to bill tenants while accepting payments via credit cards, checks, and ACH transfers.
Understanding the Factors Impacting CMBS Rates
CMBS loan rates are generally based on the U.S. Treasury Index, plus a margin, also known as a spread, which compensates a lender for their risk and provides for their profits.
What Is Corporate Housing?
Corporate housing can be a great way to increase your apartment building's profits, but there are some drawbacks and challenges you must be aware of.
What Is the American Apartment Owners Association?
The American Apartment Owners Association (AAOA) is currently the largest landlord association in the United States, with more than 100,000 members. Should you join? Read about the organization along with a few others.
What is the National Apartment Association?
The National Apartment Association (NAA) is an industry trade group for apartment owners, landlords, and investors, as well as service providers to the apartment industry. The NAA also has many local chapters, which leads to a variety of networking and partnership opportunities. In addition to landlords and investors, the NAA also attracts suppliers, builders, developers, property managers, leasing consultants, and maintenance firms.
What is Defeasance and How Does it Work?
Defeasance refers to the replacement of the collateral of a loan with securities (generally fixed-rate government bonds) that will offer a lender an equivalent return. In many cases, borrowers will need to purchase U.S. Treasury bonds to conduct defeasance, though other types of government-backed securities may be used in some scenarios.
What Are the Best Cities for Multifamily Investing in 2019?
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.
What are the Advantages of Securitization?
Mortgage debt is the most commonly securitized asset, with common securitized products including mortgage-backed securities (MBS), commercial mortgage-backed securities (CMBS), and commercial debt obligations (CDOs).
What Are The ADA Requirements for Multifamily Properties?
For multifamily investors and developers, it's essential to know what ADA rules may apply to their property. That way, they can steer clear of potential lawsuits and fines. Despite widespread knowledge that the Act exists, many people misunderstand the exact ways in which these regulations apply to the average multifamily property.
The Everything Guide to the 1031 Exchange in Multifamily Investing
1031 exchanges allow a commercial property owner to sell an asset and use the equity to purchase new property, with 100% of capital gains taxes deferred.
The Historic Tax Credit (HTC): What You Need to Know
Developers interested in rehabilitating and repurposing historic buildings may wish to look into the Historic Tax Credit, or HTC program, a federal tax credit program which provides a 20% credit against the cost of rehabilitating eligible historic structures.
The New Markets Tax Credit (NMTC): What You Need to Know
The New Markets Tax Credit, or NMTC, is designed to encourage investment in low-income communities through the use of Certified Development Entities — specialized financial entities which must be authorized and annually re-certified by the Community Development Financial Institutions Fund (CDFI Fund).
Who are the Top Affordable Housing Developers in the United States?
Each year, thousands of affordable housing units are developed across the United States. If you’re considering investing in affordable housing, or even developing affordable housing yourself, it’s essential to understand the market landscape. Fortunately, this April, Affordable Housing Finance issued a list of the Top 50 affordable housing developers of 2018. We’ve taken the top 10 and provided some additional color, so you can get a better understanding of today’s biggest players in the affordable housing industry.
The Pros and Cons of CMBS Loans: A Guide
CMBS loans aren’t ideal for everyone, but they have some advantages other financing products don't. Learn more with our guide.
Who Are the Top 10 Multifamily Developers in the United States?
With more than 300,000 multifamily units added in 2018 alone, the multifamily development industry is growing at a steady pace. And, whether you’re a multifamily real estate investor, a broker, or are a developer yourself, it’s essential to understand the overall market landscape.
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.
Rental Assistance Demonstration (RAD): A Guide
Rental Assistance Demonstration, or RAD, is a Department of Housing and Urban Development (HUD) program, which seeks to help investors preserve affordable housing across the U.S. To do this, the RAD program allows investors using four HUD legacy programs the ability to convert their housing into long-term Section 8 contracts. This helps investors by giving them more flexibility in terms of acquiring the financing to repair their properties, including making it easier to apply for the LIHTC (Low-Income Housing Tax Credit Program).
Special Servicers for CMBS Loans
One potential downside to CMBS is that these loans are not serviced by the lender that originated them, and are typically placed under the supervision of separate loan servicing company referred to as master servicer. But what if things go south and a borrower defaults on their loan? That’s when another company, called a special servicer, comes in.
Small Apartment Loans: The Best Options for Borrowers
For investors with smaller multifamily properties, loan options may seem a bit limiting. However, there are plenty of strong financing choices out there.
Single Asset Single Borrower (SASB) CMBS Loans: What You Need to Know
SASB CMBS transactions involve the securitization of a single loan, which is typically collateralized by one, very large property. Single Asset Single Borrower transactions are typically based on loans of at least $200 million, and often range up to $800 million to $1 billion+. While most are collateralized by one property, SASB loans can also be collateralized by a group of cross-collateralized/cross-defaulted properties all owned by the same borrower (much like a Fannie Mae Bulk Delivery Loan or Fannie Mae Credit Facility financing, though with much less flexibility).
Understanding Loan Ratios in Multifamily and Commercial Real Estate
One of the primary components used by commercial real estate underwriters to determine a loan amount is leverage. Leverage is summed up and determined based on the loan to cost and loan to value ratios.
Master Servicers for CMBS Loans: What Borrowers Need to Know
Unlike a traditional bank or credit union loan, a CMBS loan is not serviced by the lender that originated the loan. A third-party loan servicing firm, known as a master servicer, will typically take on this responsibility.
How the CMBS Securitization Process Works: A Guide
When a conduit lender issues a CMBS loan, they will pool it in with a variety of other loans in order to create a commercial mortgage-backed security. These CMBS loans are similar to bonds, in the sense that they are traded on the open market.
LURAs: Land Use Restrictive Agreements and the LIHTC Program
If you’re a multifamily investor/developer using LIHTCs to fund the construction or rehabilitation of a multifamily property, you must agree to limit rents and follow other restrictions (agreed to in a LURA) for a certain time.
How Property Management Fees Work for Multifamily Properties
Commercial and multifamily property management fees will range between 4% and 12% of the property’s overall rent. However, in some situations, these numbers may go as low as 3% and as high as 15%. In other cases, especially when a building is very large, a company may charge one flat, monthly fee.
Purchase or Refinance a Multifamily Property Today
Whether you are a new borrower or are looking to refinance an existing loan, it's important that you partner with a lender like Multifamily.Loans to get you the best leverage and financing terms available.
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.
Do You Need a Business Plan for Apartment Investing?
If you want to give yourself the greatest chance of succeeding in the multifamily investing game, writing an effective business plan is key. A business plan can clarify your goals and bring potential obstacles to your attention.
EB-5 Financing for Multifamily Real Estate Developments
While there aren’t millions of investors lining up, the program is certainly beneficial to a Chinese citizen who wishes a green card to live in the US.
Hard Costs vs. Soft Costs for Multifamily Construction
Learn the crucial difference between hard and soft construction costs in multifamily development and how they impact profitability. Read our expert guide now.
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?
Due Diligence for Multifamily 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.
How Cost Segregation Can Generate Massive Savings for Multifamily Investors
When it comes to investing in multifamily properties, investors generally want to take every reasonable measure to increase their returns. One of the most effective ways to do this is to reduce their tax bill via cost segregation, which massively speeds up the rate at which investors can claim tax deductions.
Buying Your First Apartment Complex: An Investor Guide
Demystify how to buy an apartment complex with our in-depth guide that covers everything from your financing options to your different holding strategies (among much more).
Coronavirus & Its Impact on the Multifamily Industry
COVID-19 is impacting the multifamily industry. As yields come in, spreads widen, and tenants feel pressure, what will happen to multifamily real estate and capital markets?
CMBS Spreads: What You Need to Know
A CMBS spread, also referred to as a CMBS credit spread, is the difference between the interest rate of a CMBS loan and the underlying index on which the interest rate is based on. Since the vast majority of CMBS loans are based on the swap rate, spreads can usually be determined by taking the interest rate of a loan and subtracting the swap rate.
Commercial and Multifamily Loan Origination in 2019
In commercial real estate, loan origination typically includes each step of the lending process, from initial application to disbursement of funds. According to the Mortgage Bankers Association (MBA), total commercial loan origination was a record $573 billion in 2018, an approximate 8% increase from the $530 billion of commercial loans originated in 2017, itself an 8% jump from the $491 billion in commercial originations reported in 2016.
CMBS Lenders vs. Life Companies: What You Need to Know
CMBS lenders and life companies often compete in the same space for large real estate deals. Both have significant advantages and certain disadvantages. For instance, life company loans typically offer lower rates and significantly better loan servicing, while CMBS loans are much easier to get approved for and offer benefits including interest-only periods (and even full, interest-only loans).
Association Profile: Apartment Owners Association of California, Inc.
The Apartment Owners Association of California, Inc. (AOA) is one of the larger apartment associations in California. The organization was created in 1982 by Daniel C. Faller, who currently serves as the president of the AOA. Like many apartment associations, it offers members access to educational resources and seminars, business consultations, forms, and a variety of discounted landlord services.
Association Profile: The Apartment Association of Greater Los Angeles
The Apartment Association Of Greater Los Angeles (AAGLA) is one of the largest apartment associations in Southern California. It is also one of the largest local affiliates of the National Apartment Association (NAA). The AAGLA, which has operated since 1917, is designed to help multifamily investors, developers, property managers, and other members of the apartment industry by providing networking, educational opportunities, and discounted landlord services as well as politically advocating on behalf of the local and national apartment industry.
CMBS B-Pieces and The Multifamily and Commercial Lending Market
CMBS loans are among the most popular types of financing for multifamily and commercial real estate, with approximately $77 billion in CMBS financing issued in 2018 alone. As many already know, CMBS loans are designed for securitization, meaning that one borrower’s loan will generally be grouped with many others to generate a commercial mortgage-backed security, which is then sold to investors on the secondary market.
Selecting a General Contractor for a Multifamily Construction Project
Choosing a general contractor is one of the most important decisions you’ll make. It’s essential to understand a contractor’s role, and what you need to know to select a qualified, professional contractor that will get the job done correctly.
Cash On Cash Returns: Calculator, Risks Involved
Agency Loans for Multifamily Properties: What Borrowers Need to Know
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.
Apartment Lender Inspections: What Borrowers Need to Know
In some cases, inspections may occur before a borrower is approved to purchase a property, however, in most contexts, an apartment lender inspection is for the sole purpose of monitoring progress on a construction or substantial rehabilitation/renovation project.
What is the Opportunity Zones Program?
The Tax Cuts and Jobs Act of 2017 created a new tax incentive program to encourage capital investment in economically distressed areas of the country. Via the use of opportunity funds, corporations can attract investment into multifamily and commercial real estate, as well as stock or partnership interests in companies that operate in or do a significant amount of business in an Opportunity Zone.
Association Profile: Apartment Association of Orange County
The Apartment Association of Orange County (AAOC) is one of the largest apartment associations in the Southern California area. It is an affiliate of the National Apartment Association (NAA), as well as an affiliate of the California Rental Housing Association (CalRHA). Just like most apartment and landlord associations, The Apartment Association of Orange County provides members access to a variety of discounted landlord services, the ability to attend networking and educational events, easy access to forms, and certain other benefits.
Association Profile: California Apartment Association
The California Apartment Association, or CAA, is the largest apartment association in the state of California, as well as the largest state apartment association in the United States. The CAA provides a variety of benefits to members, including classes, events, and discounts on important services. It also advocates for political change on behalf of California’s apartment industry, both through direct outreach to legislators and via its political action committee (CAAPAC).
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.
The Top 10 Agency Apartment Lenders of 2018-2019
In 2018, agency lenders Fannie Mae and Freddie Mac issued a combined $143 billion in multifamily loans. While Fannie Mae issued more than $65 billion in multifamily financing, Freddie Mac Multifamily issued approximately $78 billion in loans. Overall, Fannie Mae origination is slightly down from 2017, in which the agency closed more than $67 billion in multifamily financing. In contrast, Freddie Mac Multifamily saw a noticeable rise in originations, with an approximate $4.8 billion growth from 2017’s $73.2 billion, itself a nearly 30% jump from $56.8 billion in loans originated in 2016.