Five Basic Tips For Multifamily Apartment Financing
In this recent economic downturn, with homeownership on the downturn and people losing their homes, multifamily rental demand has reached an all-time high. This article cites the five essential tips for obtaining multifamily financing. 1. Capital: The need for the borrowing entity to have cash on hand for reserves. The amount will vary depending on the building and the amount of money that is borrowed. An individual can obtain like-minded partners to raise capital. Be forewarned that any partners will need a straightforward define via an LLC or Corporation contract. 2. Credit: The borrowing entity, either an individual or corporation, LLC, etc., will need to show creditworthiness. 3. Property Evaluation: This is the most significant difference between multifamily apartments and single-family homes. The value of the multifamily property that based on the net income it produces. The money will not lend to a property that is in bad shape and the net income...