Updated almost 9 years ago on .
8 Tips to Follow when Making a Multifamily Loan Request
I’m often asked by aspiring and seasoned owner-operators about the process and requirements for getting a loan on a multifamily property. Whether it is a first timer’s very first multifamily loan or an independent owner-operator’s first agency loan, the process is quite different than the one for single family rentals. Here are a few tips for increasing the likelihood of approval and for overcoming the challenge you may face if you lack direct multifamily experience. This is written from a lender’s perspective. Others may have a slightly different perspective. Let me know what questions or comments you may have so that I can add to this post.
Before we begin, understand that every lender will look at things differently. These are some general guidelines that most lenders, such as me, follow. Follow this advice and you’ll increase your chances of securing a competitive loan for your multifamily property.
To read the details on each tip, please visit the blog at www.apartmentloansdirect.com
Tip #1: Understand how big of a property you can afford
Tip #2: You will need to address experience and the lack thereof.
Tip #3: Prepare an Executive Summary describing your transaction
Tip #4: Have a pro forma prepared
Tip #5: Have your personal financial statement and schedule of real state up to date, accurately disclosing your net worth and all liquid assets.
Tip #6: Identify a third-party property manager to manage the property for you.
Tip #7: Try to stay close to home
Tip #8: Know your transaction and identify lenders ahead of time