Multifamily Residential Financing
It's a new year and the market for multifamily residential is hot. Yardi reports in the Yardi Multifamily Rents Matrix for 2016 that multifamily rents in 2015 grew by 6.4%! This is good news for the industry. This equates to a 190 basis point increase over 2014 numbers and crushes the long-term average of 2.8%.
So how will this affect multifamily residential financing, we think the answer is; positively! Interest rates are still very low, hovering around 4%. We are starting to see LTV's creep up as continued rising rents take pressure off of risk.
Multifamily residential financing for refinance to a lower rate to increase cash flow is a very popular strategy and underwriters are pushing these loans through with very little issues. Purchase of existing multifamily residential developments is taking a little longer as underwriters want to make sure that the property is not being purchased at 'peak' pricing, however, experienced operators are still having very little trouble.
Some investors are seeking cash out for improvements or to convert capital gains to liquid assets, in these instances LTV's have ballooned to as high as 80% with some GSE sponsored multifamily loans in major markets. Finding out how to get the most out your multifamily residential financing needs is easy, contact Michael Gross, President of Dividend America Commercial Lending, the multifamily residential financing experts.
Multifamily Residential Financing for acquisitions, rate and term refinance and cash-out refinance in all 50 states and focusing on the markets and submarkets listed in the S&P Case Shiller Home Price Index and the surrounding secondary markets to those cities. We look for opportunities in: 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.