areas. Even so, many wealth builders looking to acquire an apartment building can use a good loan Finder to steer them in the right direction. And many potential borrowers will pay a good commission to a loan Finder that helps them find the best loan possible.
A MULTI-FAMILY BUILDING IS ONE THAT HAS FIVE OR MORE UNITS. The most common purpose of most apartment building loans is to fund the purchase or refinance of a multifamily building. Loans for rehabbing buildings are just as important, however. A large number of commercial lenders make this type of loan. Look for lenders that offer loan packages for rehabbing apartment buildings. Here are your steps:
- Gather all the information from your client as to what financing he or she needs. This might include loan applications, summaries of the proposed purchase/rehab, plans to produce an income from the building, and so on.
- Draw up a “C” list (long list) of all potential lenders from a source such as the list below.
- Sift through each lender’s information, one at a time.
- Pay special attention to basic data such as the geographic areas, loan purpose, loan type, and loan requirements and details of each lender.
- Based on Steps 2 and 3, narrow your “C” list to a “B” list (middle list) of lenders to examine more closely. For example, you can eliminate “C” lenders that don’t make loans in the area where the building is located.
- Compare the types of funding that each one offers.
- Make note of each lender that might make the size and types of loans you seek in your area
- Select your “A” list (short list) of lenders to study further and to contact for more information or a loan application.