BiggerPockets

TOP 10 Deal Killers

Sunday, February 12

Commercial lending, for the most part is based on the value and performance of the commercial assets used as collateral. Because of the focus on the asset performance, many borrowers expect commercial loans to be non-recourse. Most borrowers are optimistic investors leaving much to chance. Most private lenders are bullish and use mathematical models to provide risk assessment. Loan originators are jammed up in the middle.

Private lenders determine risk just as banks do, with some exceptions. The private lending industry has additional obstacles as more and more people jump on the bandwagon to earn huge fees just by providing a referral. Just about anyone with a phone and a PC with internet access can refer deals to a commercial loan broker and expect a sizable commission. This adds burden to the loan and to the deal overall.

Getting a loan into underwriting by a private lender can be challenging as they all have their own criteria for evaluating risk. Some commercial brokers will provide much of the upfront work such as preparing the package and filtering bad deals. Others are no more than a conduit for providing documentation from the borrower. They try to justify their fees by participating in conference calls and prodding the lender for status updates. This micro-management of the file creates animosity between the brokers in the chain and may eventually kill the deal.

Is your deal bullet-proof? If you have any of the following issues your project may be facing insurmountable obstacles. While it’s true that some issues can be overcome at a cost, others are just poison. Hopefully, this article will help you to evaluate your deals and avoid some headaches.

# 10 – Property Issues

Contrary to popular belief private lenders do not like distressed properties and REOs. The mere fact that a property is distressed means there may be issues with title, legal issues, tenant issues, local economy, and ability to service debt. Remember, the banks want to dump these assets. That should be a clue. Subtract 5 for each of these issues, add 10 if the property title is clean and performing.

# 9 – Borrower Investment

Some commercial brokers think they sound experienced by using the term “skin in the game.” Frankly, commercial lending is no game and the borrower’s equity can be evaluated in many ways, depending on the history of the property and the number of owners. On the other hand, if an investor is trying to purchase a property with no cash, he/she is just a dreamer. Subtract 25 for this scenario. Add 5 if the borrower has 5% invested, add 10 if the borrower has 10%, and so on.

# 8 – Management Experience

I was contacted by a pro football player last year who was advised by a fellow player to get into commercial real estate investments. This makes some sense, since an injury can end a career for pro athletes. So he asked me how to buy an apartment complex. You need experience. How does one gain experience? Find an experienced partner. Subtract 10 for no experience.

# 7 – Financial Strength of Principle

Net worth and liquidity are on every lender’s intake form. So why do borrowers and their referral sources ignore the simple facts? Most commercial loans are full recourse. This is typically based on the cash invested in the property and the net worth of the borrower. Borrower credit scores are evaluated just the same as home buyers. Credit scores affect interest rates. If the borrower liquidity is less than 5% subtract 75. If the borrower’s net worth is less than 50% of the loan amount, subtract 25.

# 6 – Broker Chains

The more brokers in the chain, the less likely any lender will consider the loan. There are exceptions – Large attractive deals where the lender stands to make a bundle. They will demand direct communication with the borrower. Two brokers is an acceptable situation. Subtract 10 for each additional broker.

# 5 – Upfront Broker Fees

Brokers do not risk anything by working with borrowers that shop deals. If a broker charges a fee it usually means they are not confident that they can provide a lender. The lender is the one at risk. For that reason, many direct lenders will charge due-diligence fees and a commitment fee up front. These fees are typically credited at closing. The whole idea is to protect the lender from a borrower who shops the loan. Subtract 15 if the broker charges upfront fees.

# 4 – Exit Strategy

Borrowers with poor or no exit strategy are not prepared and show a lack of experience and business expertise. The Lender needs to know how he will get out of the deal. Subtract 10 for poor or no exit strategy.

# 3 – Loan Shopping

Loan shopping at the very least shows deceit on the part of the broker or borrower. At best it shows that the borrower has poor character and no consideration for the effort and cost expended by the lender and brokers. How would you react if you spent 20 or more hours finding a lender, preparing information, evaluating documents, and making a case for your client, only to have them work with someone else? Most borrowers will not sign exclusive agreements. The fact is most brokers provide little value and have not earned their clients’ trust. Subtract 30 if the loan is being shopped.

# 2 – Excessive Fees

This occurs when there are too many brokers in the chain and they are not working in the borrower’s interest. Overcharging fees is a poor reflection on a broker’s character as their motive is based on money, rather than providing a service. You can’t tell other brokers what to charge, but you can certainly refuse to work with them. Subtract 10 for each point, if brokers are charging more than one point each.

# 1 – Debt Service Coverage Ratio (DSCR)

How many times have you heard borrowers say, “The net income on my tax returns is lower than my actual net” …really. Just because they send information all tidy on a spreadsheet does not mean that the income will actually service the loan. The underwriter will verify all this. Most lenders want 1.25 DSCR or above. Check the expenses and ask questions. Subtract 90 if the DSCR is below 1.25, add 75 if above.

So how did you score? Anything above 75 is promising. Below that, you may want to rethink your situation.

Andy Sabo is the President of TOP 10 Funding, LLC.

TOP 10 Funding currently represents over 75 private lenders and we are constantly vetting new sources. We have access to Billions of dollars to lend for commercial projects, such as shopping centers, multifamily, assisted living, and office building purchases and refinance, new developments and commercial construction loans in most cities in the US.

We have great relationships with DIRECT private commercial lenders.

There are no up-front broker fees and the application process is simple and fast. An executive summary and a short intake form will get you an answer in a few days.

Phone:  (808) 375-4845

Email:  asabo@top10funding.com

Website:  top10funding.com

Andy’s Blog:  http://top10funding.com/blog

LinkedIn:  linkedin.com/in/andrewsabo

Facebook:  facebook.com/andy.sabo

Twitter:  @andysabo808

TOP 10 Funding PRESS RELEASE

Tuesday, July 12

FOR IMMEDIATE RELEASE:

CONTACT:

Andy Sabo

TOP 10 Funding LLC

Phone: (808) 375-4845

Fax: (808) 732-8534

Email: asabo@top10funding.com

Website: http://top10funding.com

 

TOP 10 FUNDING LAUNCHES WEBSITE - PRIVATE LENDING COMMERCIAL REAL ESTATE

 

Mililani, HI, July 12, 2011 – TOP 10 Funding launched its website today in support of efforts to provide private lending to commercial real estate clients. The website has three main functions, including loan application submission, agent signup and website, and a place for independent brokers to post their deals.

 

Andy Sabo, CEO of the company has over 30 years experience in software development, small business, finance, and marketing. Mr Sabo’s recent experience in the commercial lending industry has led him to start a company based on providing reliable lending sources and support to agents. “Other brokers charge new agents monthly fees for the privilege of submitting loans into broker chains. We work with direct lenders”, says Sabo. “We provide agents with access to our Microsoft^® SharePoint^® Training Portal and a personal webpage on the main site. Managing information and providing tools for training and marketing is the key to our success.”

 

The recent void in available funds from commercial banks around the country has sprouted a new industry in private lending for commercial real estate. TOP 10 funding is building a network of agents without charging agent fees. Andy Sabo explains, “Agents are required to agree to the company code of conduct, which includes internet business etiquette, ethical practices, and working as a team. Helping agents to become successful and respected by their peers is how we will build a successful brand.”

 

ABOUT TOP 10 Funding LLC

TOP 10 Funding represents private lenders for commercial real estate projects, such as purchases or refinance of multifamily apartment buildings, industrial, office buildings, medical, assisted senior living, and construction in most cities in the US. There are no up-front fees and the application process is simple and fast. An executive summary and simple online application will get you an answer in a few days.

 

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If you would like more information about this topic, contact Andy Sabo at (808) 375-4845 or email asabo@top10funding.com  for more information.

The Key to the Private Lending Vault

Wednesday, April 27

As a private lender for commercial real estate, I receive requests everyday for loans and equity partnerships. On average, about 1 out of 100 is presentable to the lender and 1 out of 25 of those is fundable. If you are a broker or an investor looking for a loan for a commercial real estate purchase or refinance, you could save yourself some time and frustration by giving the lender what they need to evaluate your request.

Start by Selling the Borrower

The best loan request I ever got started out with a short paragraph telling about the borrowers. “Chris and Anthony Jones have made an offer that has been accepted on an apartment building in San Francisco, CA. The purchase price is $12M. The borrowers own 2 other buildings in the area that are free and clear. Their combined net worth is $80M. Their
credit is excellent. Their total debt is $3M on their home and they have sufficient reserves to cover their debt.”

Brokers – Do Your Job

I had a broker respond once with, “I will ask the borrower, but your question seems too banky.” If the broker is overselling the project, that usually means the borrower has no cash, poor liquidity, or has been denied by other lenders. Most lenders will give a reason for the rejection. Fix the problem before going to another lender. Private lenders are more attached to their money than banks are, so they want a good investment with low risk.

Answer the Basic Questions

Be concise and get to the point. What are you asking for and why should the lender consider your request? Every CRE loan request should include the type of request, LTV, the amount, value of the property, why you are investing, market comparison, rental survey, borrower financials, NOI, DSCR, proforma, photos, and the borrower’s cash investment.

Expect a Request for More Information

When a lender asks for more information, it usually indicates that they are interested in the borrower and the potential of the property. Expect the lender to ask for an MAI appraisal, signed and accepted CRE contract, rental survey for the area, management resumes, personal financial statements, and three years’ tax returns. If the project is a rehab, the lender will ask about the contractor’s license, experience, project plans, and how the project will increase revenues. For construction projects, they may ask for a copy of the construction contract, a copy of the plans and specs, a copy of the initial project cost analysis, the builder’s general contractor license, the builder’s workers comp & blanket insurance binder, and the builder’s resume.

Private Money is Available

Private lenders are easier to work with than banks and they can usually close faster. The best way to speed up the process is to be prepared for the obvious questions the lender will ask. If you are looking for an equity partner because you don’t have the cash to invest, be honest and upfront with the agent; we have the key to the vault.

Andy Sabo is the President of TOP 10 Funding, LLC.

TOP 10 Funding represents private lenders with access to $400 Billion to lend for commercial real estate projects, such as multifamily, assisted living, and office building purchases and refinance, business financing, new developments and construction in most cities in the US.

We have great relationships with DIRECT lenders for Commercial Real Estate.

There are no up-front fees and the application process is simple and fast. An executive summary and a two-page application will get you an answer in a few days.

Phone:             (808) 375-4845      Email: asabo@top10funding.comWebsite: top10funding.comAndy’s Blog: http://top10funding.com/blogLinkedIn: linkedin.com/in/andrewsaboFacebook: facebook.com/andy.sabo

Twitter: @andysabo808 

The Art of Writing an Executive Summary for Private Lending

Wednesday, April 13

I usually start my blogs out with something amusing to get the readers’ attention.

This time I thought the picture makes a great point. Every business plan is good for something – then there’s that whole perceived value thing.

This article will give some tips to creating an executive summary targeted to private lenders for commercial real estate.

Personalize Each Submission

Investors looking for funding or joint ventures should tailor their documents to match the recipient’s interest if they wish to be taken seriously. Because of competition in the industry, private lenders don’t publish their criteria, rates, or preferred deals. Each deal is evaluated on its own merit and a decision to work with a borrower or JV partner is based on a small window of opportunity via the executive summary.

Integrity of the Borrower

One of the biggest challenges in the private lending business is extracting information from executive summaries and gathering information to present to our lending groups. Loan requests and business proposals should be prepared with the intent to answer all of the lender or investor’s questions. Trust and integrity is a big part of the presentation. A lack of financial information or a reluctance to give information about the borrower raises a red flag to the lender.

Document Format

PowerPoint presentations are great when you are in a meeting setting, but should not be used as a request to do business. Your ES should be limited to two pages of text in a Word document or PDF.  Use a file name that indicates the project name and the amount of the loan. For example, Venus and Mars Apartment Purchase – 4MM.pdf. If you feel the need to send a complete business plan or photos of the property, include those as separate documents.

Your Objective

Tell the lender what you are after. If you want a loan, be specific. If you want an investor or joint venture, give the investor an idea of what this is going to cost him. The objective answers the first question for the lender. Give the loan amount, LTV, and terms you are asking for.

The Property

The lender wants to know how the loan will be secured and what his risk is. What is the property worth? You should always have an appraisal before asking for a loan. The type of property and class should be indicated. What are you paying for it? Do you have a purchase contract? Are there deadlines?  Why are you buying this property? Lenders are specific about which cities they will invest in and need to evaluate the property based on current financials.

The Management

Many investment proposals indicate that the buyer will make improvements and change management to improve occupancy rates and cash flows. Indicate the experience of the management team, developer, or contractor and their track record. Indicate why you think you will manage the property better than the current owner. The lender may also ask for resumes.

Financial Summary

Your financial summary should include the acquisition costs, income, expense, cash flow, and financial indicators.  The borrower’s down payment or equity should be clear. Indicate current and stabilized NOI, occupancy rates, and optimal IRR, debt coverage ratio, and capitalization rate.

Personal Financial Statement

Strength of the borrower is one of the main deciding factors in every deal. Some investors believe they can hide behind the corporate veil or use an LLC as the purchasing entity. Most CRE loans are recourse loans and the lender will ask for a PFS for anyone with 20% or more ownership. A majority ownership in this business is defined by 81% ownership. Along with the PFS the lender will ask for three years’ tax returns. This does not need to be included in the ES, but should be mentioned in the cover letter.

The Market

Understanding economics is necessary when determining the market demand and why the market is stable or improving. This information can be obtained by commercial real estate firms in the area. Secondary market research from a credible source goes a long way. Include rents and occupancy rates in the surrounding area for similar property types and class.

Exit Strategy

Multiple exit strategies are a good thing. Your plan should briefly describe what improvements are needed and their cost, how much money you expect to make and the timeframe.  You should also indicate your contingency plan if things go wrong and how to access the profits or future financing plans.

The executive summary is a summary of the essential elements of your business plan. Many summaries come across as propaganda or include information that does not pertain to the property itself; instead, they contain mission statements, and photos of non-related properties. Customizing the ES for a lender or investor, along with a well written cover letter will result in consideration and respect as a professional investor.
 

Andy Sabo is the President of TOP 10 Funding, LLC.

TOP 10 Funding represents private lenders with access to $400 Billion to lend for commercial real estate projects, such as multifamily, assisted living, and office building purchases and refinance, business financing, new developments and construction in most cities in the US.

We have great relationships with DIRECT lenders for Commercial Real Estate.

There are no up-front fees and the application process is simple and fast. An executive summary and a two-page application will get you an answer in a few days.

Phone:             (808) 375-4845      Email: asabo@top10funding.comWebsite: top10funding.comAndy’s Blog: http://top10funding.com/blogLinkedIn: linkedin.com/in/andrewsaboFacebook: facebook.com/andy.saboTwitter: @andysabo808

 

CRE Private Lending - A Performance Based Industry

Wednesday, March 30

People from New Jersey sometimes have a unique way of getting their point across. In the commercial real estate and finance business, individuals are gruff and take crap from no one.

I grew up in Woodbridge, NJ, which is about 30 minutes by train to NYC. When my Mom was walking out the door, if we asked where she was going, her response was typically something like, “Up the pig’s ass for a ham sandwich. You wanna come?” I miss my Mom, she had a great way of getting her point across.

Negotiating is an Art

I recently had a conversation with Mike Paff, a real estate broker in the Northern NJ and New York City Metro area. Mike is has a wealth of experience and an excellent grasp of his market. We discussed the lending business and how all the players take a position and are not willing to budge. Buyer’s brokers end up contacting everyone they know to get the same answers. Some lenders will scrutinize a $10 million loan more than a $100 million loan with lower ROI. It is difficult to understand their position because they don’t publish their criteria. It’s all about negotiating and not losing your position because you overlooked some important information. According to Mike, “in the process of negotiating commercial real estate, everybody must be willing to lose the same number of fingers.”

It must be tough to be a piano playing CRE Broker in Jersey.

The negotiating process also means the parties must perform. We all want deals to close with everyone walking away a winner. To achieve success in a deal that works for everyone, there must be balance. Like a marriage in Utah, all parties must compromise. There are several parties in a CRE deal, so communication and management of information is crucial. Typically a deal can have a 6 or 8 interested parties:  the buyer, other guarantors, his real estate agent, the agent’s broker, the loan broker, the lender’s agent, the loan officer, and the bank or private lender. Sometimes borrowers put themselves in a position that requires a brokers’ chain, because of a weak deal.

Performance of the Buyer

There are many types of investors in the real estate industry. Some have started out in residential and moved into commercial others may have moved from other investment categories.  Then there are speculators, no-money-downers, non-profits, builders, and those looking to use the IRS 1031 exchange program work to their advantage. All of whom have different objectives, so they focus on what is needed to meet those objectives. A problem with buyers sometimes is that they lack expertise to make their loan presentable to a bank or private lender. Be prepared is the motto of the Boy Scouts of America. You expect your kid to do his homework and be prepared. That’s all lenders ask of borrowers. You are asking for money, so tell the lender why you are trustworthy, your credit score, how you will pay it back, what the property is worth, how much you want, why you want it, and what’s in it for the lender. The buyers’ digit is their cash down payment and/or equity. The lender wants your financial commitment.

Performance of the Buyer’s Broker

In commercial real estate buyers hire brokers to perform two functions – find a property and get funding for the project. This means they are taking the buyer’s position in terms of preparing documents, business plans, proforma sheets, and marketing materials. Many times the CRE Broker finds the property and a Commercial Loan Broker does the rest. They understand the CRE industry, lending, and the language of the lenders. Advice to these professionals – sit on the other side of the desk. Ask yourself, “Would you fund this?” Your link to the lender may be a loan officer or an agent for a private lender. They are the gatekeeper. They want to make the deal happen, but don’t want to lose their job and credibility in the process. The broker must make the numbers work for the lender and do their best to show risk, not hide it. What digits must they give up? Work hard for your client’s interest.  That means telling them the hard truth about a project that they may be emotionally invested in.

Performance of the Lender’s Agent or Loan Officer

Private lenders have an agent working for them to go out and find the deals. That means the agent get paid by the deals that close. Simple! Or is it? The agent is always in a tough spot, stepping on the gas and brake at the same time. The agent wants the buyer to get his loan but must take the position of the lender. His/her skill-set is constantly growing as he/she must establish expertise to make a variety of deals work and maintain credibility in the industry. Most of the applications submitted are scrutinized and never close. The buyer learns more about his position and adjusts his deal so it works with another lender. Someone else gets the deal, most likely with the same private lender, and the agent gets to go to stress therapy. In this business you must constantly adjust your attitude to remain positive. The agent’s digits are based on communication and humility.

Performance of the Lender

Consider yourself a lender. You have all this money that you want to work for you. The fact is the world is filled with greedy [insert cuss word here] who want to scam you for your money. That’s what most of us think about banks and private lenders. The truth is, they are in business to invest money and want to make loans with legitimate businesses. That means they must perform internally to their constituency and perform externally to protect their position. There is no room for emotion in this business, any doubt results in, “no, next file.”  Performance here is the ability to underwrite and fund in a timely manner. The lender’s digits are based on the amount of work and expense that goes into their process before the loan funds. Other parties can get emotional and walk away during the process.

The Stars Must Align

This process conjures up the image of a gangster movie. A meeting in the back of an Italian restaurant in Brooklyn, a thick neck guy named Nick, a pair of wire cutters, and fingers laying on the table.  It’s not that bad really; they can’t cut off your fingers if you’re telecommuting.

The process requires a huge effort and compromise from all parties. Having perspective by working in different areas at different points of your career also helps. If the economics conditions are right, the borrower is strong, and the risk is understood, then things are likely to go well… as long as the players don’t get emotional.

Andy Sabo is the President of TOP 10 Funding, LLC.

TOP 10 Funding represents private lenders with access to $400 Billion to lend for commercial real estate projects, such as multifamily, assisted living, and office building purchases and refinance, business financing, new developments and construction in most cities in the US.

We have great relationships with DIRECT lenders for Commercial Real Estate.

There are no up-front fees and the application process is simple and fast. An executive summary and a two-page application will get you an answer in a few days.

Phone:             (808) 375-4845      

Email: asabo@top10funding.com

Website: top10funding.com

Andy’s Blog: http://top10funding.com/blog

LinkedIn: linkedin.com/in/andrewsabo

Facebook: facebook.com/andy.sabo

Twitter: @andysabo808

 

 

Investing in Multifamily Real Estate - Where's The Beef?

Thursday, March 24

Investing Multifamily Real Estate    

Where’s The Beef?         

I recently went to a networking meeting where a young real estate investor spent about thirty minutes talking about how investing in multifamily real estate is making him wealthier than he ever imagined. He claimed to get into the business with no cash using other people’s money (OPM). So why was he in a networking meeting trying to make connections? There’s a special place for people like that.

Is there money to be made in this area of real estate? Absolutely! To succeed you need what I like to call the 3 C’s and some B’s. Capital, Credibility, and Crystal Ball(s).

Capital – This is risky business. Lenders want a down payment of at least 20-30%. Depending upon your preferences and goals, current criteria generally seek cap rates of not less than 8% and “cash-on-cash” returns of not less than 12%, loan-to-value (LTV) ratios of 70% to 80% (depending upon whether recourse or non-recourse financing is used), and debt service coverage of at least 1.25. Banks are not excited about lending for commercial property these days, so the only option is private lending. Equity share in a property may be used as a contribution for down payment with some lenders, but these deals require that all the pieces fit together well. The consultants representing the buyers add a fee, they sometimes involve other consultants and you end up with a “broker’s chain” of fees that could end up with upwards of 23% APR or more on the loan.

Credibility – Okay, say a mechanical engineer just lost his or her job, and wants to buy an apartment building, fix it, flip it and make a huge profit. Engineers are smart, respected people. Multifamily RE investing is not like engineering; Real estate investing requires business savvy, and an understanding of finance, risk assessment, marketing, construction, and timing. Lenders lend to people with relevant experience. Conversely, a general contractor who knows how to renovate a building may not have the expertise to improve occupancy through management and marketing.

Crystal Ball(s) – The combination of being able to analyze market trends, economic forecasts, and being in the right place at the right time is important. If the property is bank-owned or priced under market, there is usually a good reason. Valuation of commercial property is based on cost and income. You must know about CAP rates, NOI, and have an ability to predict the future.  Having “skin in the game” as they say requires courage, backbone, guts. You need to be just like a financial gladiator, except without the lions and swords.  

The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for the third quarter of 2009. The data in this report reflects a negative outlook for multifamily apartment investments. Here are highlights from the report (www.mortgagebankers.org):

• Vacancy rates rose in the third quarter for all major property types.
  • For apartment properties, vacancy rates rose from 6.5 percent in the third quarter of 2008 to 8.4 percent in the third quarter of 2009.
  • Industrial properties saw vacancy rates rise from 9.8 percent to 13.0 percent
  • office properties saw a rise from 16.0 percent to 19.4 percent and retail vacancies rose from 12.9 percent to 18.6 percent.
• Asking rents have been falling –
  • 6 percent for apartments
  • 9 percent for industrial properties
  • 9 percent for office properties
  • 8 percent for retail properties
• Property Sales and Construction activity have seen significant declines
  • Year-to-date property sales in 2009, through 3rd quarter, were 72 percent lower than the same time in 2008, which was 66 percent lower than they had been in 2007.
  • Every major property type was affected
  • Sales volume is so low it is hard to gauge commercial property prices but the Moody’s/REAL index showed an 11.5 percent drop over the quarter.
  • New construction activity has slowed to a crawl. Nationwide construction was started on only 5,000 units in multifamily housing in October – the lowest level ever. Given market fundamentals and pricing it is unlikely we will see a significant rebound any time soon

Another analyst has a different story. The CoStar Group (www.costar.com) reports “U.S. Multifamily Market Strengthens in Third Quarter On Rising Demand, Falling Vacancy.”

• The national vacancy rate compiled from the 54 largest markets tracked by CoStar declined for the third straight quarter in 2010, falling 20 basis points to 7.7%. The national rate was a record 8.4% at the end of 2009, rising 130 basis points over the course of last year.
• The third quarter saw positive demand of around 47,000 additional units. Year to date, renters have absorbed about 140,000 units. In 2009, demand was a negative 60,000 units.
• So far in 2010, 20 metros have recouped their total demand for apartments lost due to overbuilding and other factors during the real estate downturn and recession. There’s a wide disparity across the country in demand growth. However, metros grew an average of 1.3% in the first nine months of 2010. Four of the five markets where demand is rising the fastest are Sun Belt metros, including Charlotte, NC, which saw the strongest growth at 3.5%, followed by Raleigh-Durham, NC; Phoenix and Dallas/Ft. Worth. Richmond, VA, also saw strong demand, mostly as a result of realignment of military personnel.

So where is the beef?  Kiplinger (www.kiplinger.com) says the 10 best cities for prosperity, innovation, and jobs are:

1. Austin, Texas
2. Seattle, Washington
3. Washington, DC
4. Boulder, Colorado
5. Salt Lake City, Utah
6. Rochester, Minnesota
7. Des Moines, Iowa
8. Burlington, Vermont
9. West Hartford, Connecticut
10. Topeka, Kansas

The above cites will no doubt experience growth, but may not reflect a fertile ground for multifamily real estate investment. As local economies are declining, the foreclosure rates increase, as does the demand for rentals. At some point, when the economy improves, and the high paying job market stabilizes, renters will become home owners. The economic cycle requires understanding the demand window.

 

Andy Sabo is the President of TOP 10 Funding, LLC.

TOP 10 Funding represents private lenders with access to $400 Billion to lend for commercial real estate projects, such as multifamily, assisted living, and office building purchases and refinance, business financing, new developments and construction in most cities in the US.

We have great relationships with DIRECT lenders for Commercial Real Estate.

There are no up-front fees and the application process is simple and fast. An executive summary and a two-page application will get you an answer in a few days.

Phone:             (808) 375-4845      

Email: asabo@top10funding.com

Website: top10funding.com

Andy’s Blog: http://top10funding.com/blog

LinkedIn: linkedin.com/in/andrewsabo

Facebook: facebook.com/andy.sabo

Twitter: @andysabo808