Updated over 4 years ago on . Most recent reply
Bryce BowersPoster
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- Quad Cities (Bettendorf Moline Rock Island, Davenport)
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Lending on apartment buildings
What are the numbers banks run through to determine if a deal is good to lend on? I’m looking to buy apartment buildings.
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For >5 units apartment, lenders look at the NOI/debt service, this ratio needs to be greater than 1.25. Then look at the rent roll to determine the occupancy which needs to be at least 85%. After these two, then look at the borrower's credit and past experience.