What You Need To Know About Apartment Loan Brokers
While major commercial banks are cutting back their lending to the residential sector of real estate the commercial real estate market, so far, has remained relatively unscathed. Yes, most commercial mortgage banks have become more diligent with enforcing certain underwriting guidelines, but, the apartment building investor who is financing a good apartment building investment should have no difficulty finding a long term loan with a great interest rate. It should be mentioned however that the commercial real estate investor needs to be partnered with a qualified and knowledgeable commercial loan broker who has kept him or herself up to date with these changes in apartment loan programs and underwriting guidelines. A back to the basics approach to obtaining an apartment building loan is very helpful when the industry is going through so many changes.
"The way to get started is to quit talking and begin doing. " ~Walt Disney
A Commercial Mortgage Broker Should Be Part of Your Team
The new apartment building investor or those who have only a couple of deals under their belt have to realize that sellers, in today's market, are saying “Show Me the Money" before they are considering offers. In order to be taken seriously during any apartment building purchase the buyer needs to be prepared with a letter of interest from a bank, written on bank letterhead. It is even more preferable to have a commitment letter from the bank stating exactly what loan terms and what steps the buyer needs to take in order for the loan to close. This also means that the investor/buyer has to be sure he is working a commercial loan broker that specializes in multifamily apartment buildings. This recommendation holds true in any kind of market because the loan programs and underwriting programs available today are so multifarious that it takes a specialist to navigate the market successfully.
Where to Buy an Apartment Building Today
There are a lot of great reasons to begin investing in apartment buildings, even in today's shaky economic times. One of the great advantages of investing in apartment buildings is that they have recession proof characteristics. For example, an investor can purchase a property anywhere in the country that he believes will be more immune to economic downturns. Right now, many astute multifamily property buyers have their sights on the Dallas/Fort Worth market of Texas. Economists have pinpointed this geographic region as an island of potential and growth. Predictions are calling for continued job growth and additional growth in the hospitality and leisure sectors. Meanwhile, development has slowed by close to 20% putting a crimp on apartment supplies. Hey, its also close to major transportation hubs as well as major player in oil and gas.
Ted Karsch is a nationally recognized financial adviser who specializes in the financing of commercial real estate. He can obtain commercial financing for all apartment building investments with loan amounts ranging from $100,000.00 to 50,000,000.00. He welcomes any comments or questions from readers at his website
If you are new to apartment building investing and want to learn more you can subscribe to a free mini-course on apartment building investments at "Buy Your First Apartment Building E-Course"
Or enquiries can be made to his email at Ted@ApartmentBuildingInvestor.com