Multifamily Financing Do's & Don'ts of Refinance
Multifamily financing today is a hot commodity and it has gotten even hotter recently with the addition of certain programs that allow for the refinancing at rates as low as 2.875%! But many refinances will fail for lack of knowledge or lack of preparation.
What should a real estate investor do when considering refinancing an apartment loan or multifamily financing? The first step is understanding today's underwriter and the mentality that goes into the underwriting process. No longer is it enough for the numbers to work... today's underwriters are looking for good partners.
Here is an excerpt from a recent underwriter guideline update from our investor. This was the first sentence under Borrower Consideration:
"Borrower quality must be appropriate for the property/project, including credit, character, skills and liquidity."
Note: With an emphasis on CHARACTER...
There are basically two Do's and Don'ts when it comes to dealing with an underwriter in a multifamily financing; 1.) Do be cooperative and responsive, and 2.) Don't be unreasonable or argumentative.
Multifamily financing with great rates and longer fixed terms and LTV up to 80% are achievable for the right project with the right borrower. Making sure that one presents themselves as a good partner is as important as having 'good' numbers.
As a matter of fact, the fudge factor for pushing underwriting guidelines can typically be be stretched when the underwriter perceives the borrower is a good partner versus someone that may be hard to get along with. To learn more about successful multifamily financing and achieving your apartment loan refinance goals contact the experts at Dividend America Commercial Lending.
Multifamily financing and apartment loans with low rates, as low as 2.875%, is available in all 50 states with a specific focus on these cities: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.