Wednesday, October 27, 2010

Find Your Niche—Learn About Loans To Buy Or Rehab Apartment Buildings

APARTMENT OR MULTI-FAMILY LENDERS can be found in most urban and suburban
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:
  1. 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.
  2. Draw up a “C” list (long list) of all potential lenders from a source such as the list below.
  3. Sift through each lender’s information, one at a time.
  4. Pay special attention to basic data such as the geographic areas, loan purpose, loan type, and loan requirements and details of each lender.
  5. 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.
  6. Compare the types of funding that each one offers.
  7. Make note of each lender that might make the size and types of loans you seek in your area
  8. Select your “A” list (short list) of lenders to study further and to contact for more information or a loan application.
AS A FINDER, YOU CAN DO EACH OF THESE STEPS for your client, who willprobably be busy on other projects. Your client may offer to work together with you in drafting your “A” or “B” lists. If your client doesn’t suggest this, suggest it to the client. With a little experience and motivation, you and your client can make a winning team.

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