All Forum Posts by: Tony Talamas

@Abraham Anderson Do these two loan options have prepayment penalty structures or can you pay them down at any time at no cost?

@Quentin B. If your loan request is for a larger multifamily property with a loan request over $1 million, there are other options. If your loan request meets or exceeds the $1 million minimum, eply back and I can advise.

Are you a multifamily owner-operator or buyer seeking a multifamily lender who offers non-recourse loans fixed for 5, 7, 10, 12, 15 or 30 years on a 30-year amortization schedule? If so, visit my website – – to learn more about the Freddie Mac Small Balance Loan Program and the Fannie Mae Small Loan Program for loans between $750,000 and $7.5 million secured by multifamily properties.

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

Please email questions or comments to

@Eric Stieler It sounds like you would be looking at a Fannie Mae Small Loan (they will go to a minimum of $750,000) or Freddie Mac Small Balance Loan ($1 million minimum loan amount). PM me if you want more details.

@Eric Stieler It all depends on several factors - loan amount, condition, occupancy, and much more. Are you acquiring a stable (i.e 90%+ occupied) property or does the property require rehab? If it requires rehab, then a local bank may be your best option. If it's a stable property with a loan request over $1 million, then it opens up your options to many different national lenders, such as those offering Freddie Mac and Fannie Mae small loan programs. Tell me more about the LTV, price, rehab, loan amount requested, condition and occupancy.

@Patrick Hiti Yes, they are different. Just google something like "multifamily commercial real estate appraiser mill valley ca" and you can reach out to appraisers. Some may not help but others will share info with you. A property manager active in that area will help as well. Property managers would be a great resource. Depending on your experience, you may want/need to engage a third party manager anyway. So getting to know a few would be beneficial and they will share with you what they know about the market.

@Patrick Hiti Reach out to a friendly appraiser or sales broker in that market that can assist you. They should have detailed data. Some of those property managers may be able to help you as well - some may not share info with you but if your open and transparent, they may share a lot of info with you.

@Louis L. Also, if you happen to have any non-recurring expenses related to capital improvements that you ran through operating expenses (i.e. labor), be sure to break that out separately so you don't unintentionally show higher operating expenses than actual.