Apartment lender inspections commonly occur before the closing of a multifamily loan and occur at specific stages during the construction financing process. Here’s how to prepare.
Physical Vacancy vs. Economic Vacancy: What's the Difference?
When determining whether to invest in a commercial property, it’s essential to look at the property’s vacancy rate. There are two major types, or methods, of measuring vacancy; economic vacancy and physical vacancy. Economic vacancy represents the rental loss a property owner experiences due to vacancy over a certain time period, while physical vacancy represents the percentage of units that are vacant over a specific time period.
The Top 10 Fannie Mae DUS Lenders of 2021
Fannie Mae originated nearly $70 billion of multifamily loans in 2021, most of them through its delegated underwriting and servicing (DUS) program. Founded in 1988, the Fannie Mae DUS loan program allows specially approved lenders to underwrite, close, and sell multifamily loans to Fannie Mae without prior Fannie Mae review.
How to Find Apartment Buildings for Sale: An Investor Guide
Accretion, Reliction, Accession, and Avulsion in Real Estate
Mortgage Constant and How to Calculate It
Industrial Cap Rates: What Investors Need to Know
What is Cap Rate Spread in Commercial Real Estate?
Cap rate spread is the difference between the cap rate of commercial properties and current interest rates, typically measured by the 10-year Treasury Rate. Cap rate spread is an important indicator of risk, as U.S. Treasury bonds are considered virtually “risk-free,” while real estate investing involves a considerable degree of perceived risk.
90% LTV Multifamily Loans
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.