Due to their relationships with multiple lenders and industry experience, good commercial mortgage brokers can negotiate better rates and terms for borrowers while increasing their chances of closing.
Freddie Mac Mixed-Use Property Guidelines
Freddie Mac allows mixed-used properties, provided that the property’s commercial income does not exceed 25% of the property’s gross income. In contrast, Fannie Mae requires that no more than 20% of a building’s net rental space be allocated for commercial purposes and that no more than 20% of a property’s effective gross income comes from commercial space.
What are the Minimum Occupancy Requirements for Freddie Mac Multifamily Loans?
Small Apartment Loans for Investors: The Ultimate Guide
The definition of a small balance apartment loan varies from market to market and lender to lender but is typically defined as a loan between $750,000- $1 million to $5-7 million. While these loans may seem large to the smaller investor, many multifamily lenders are institutional in nature and rarely provide loans under $10 million.
The Top 20 Property Management Companies of 2020-2021
Owning and operating a multifamily property can be a challenge, however, if you employ a competent property management firm, you’ve already won half the battle. In this article, we’ll review some of the top 20 multifamily property managers of 2020-2021, including Greystar, BH Companies, Lincoln Property Company, Pinnacle Property management, Bozzuto, Cortland Properties, and more.
What is a Non-Recourse Loan in Multifamily Real Estate?
When it comes to multifamily and commercial real estate loans, there are two main types of financing; recourse and non-recourse. When a borrower gets recourse financing, they are typically personally liable if they default on (or do not pay back) their loan. This means that the bank or lender may be able to seize their personal property to achieve repayment of the debt. In contrast, if a borrower has a non-recourse loan, the bank or lender generally can only take back the property as collateral for the debt instrument.