Apartment Investing Blog
Learn the ins and outs of multifamily and commercial real estate investing via our easy-to-read blog!
In this article, we’ll review almost everything you need to know to purchase your first apartment property. Over the next three sections of this guide, we’ll answer questions including how to get investors, how to find your first deal, how to get a multifamily loan, how to close, and what to do after closing.
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.
Gross Rent Multiplier (GRM) is one of the most popular and effective metrics used to determine the return on investment (ROI of a commercial or multifamily property. It’s particularly effective at comparing a property’s profitability compared to similar assets in the same market or submarket.
Cap rate is one of the most popular ways to calculate a commercial or multifamily property’s return on investment (ROI). Cap rate, also known as capitalization rate, is calculated by dividing the net operating income of a property by its market value.
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.
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.
If you’re looking for a multifamily or commercial real estate loan, leave it to our team of experienced capital markets experts. Fill out a form today to get a free quote from an experienced multifamily mortgage banker today!
