Posts Tagged ‘apartment loans’

New Options for Multi-Family (Apartment Building) Loans – MasterPlan Capital’s Mid-Sized Multi-Family Loan

January 23, 2013

“Sweet Spot” Mid-Sized Multi-Family lending (Apartment Buildings with 6 or more units) program:

Loan Balance: $5mm-$10mm

Click our Logo to Apply

Click our Logo to Apply

LTV:                      to 75%

Rate:                      3.75%-5.75%*

Area:                      Eastern US

Time to Close:     45 Days (+/-)

*Rates as-of Jan ’13. Rates can change without notice due to market and other factors. Fully underwritten, full recourse lending. Prepayment (step-down) fees may apply. Points of between 0-1.5 may apply. Deposit may be required upon formal loan application.
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More Liquidity for Multi-Family; Freddie Mac Adds Adjustable Rate Mortgages (ARM)

June 7, 2011

Freddie Mac recently announced that adjustable rate mortgage (ARM) loans are now eligible for securitization into Freddie Mac Multi Family Mortgage Backed Securities (K Certificates).

ARMs will now be purchased by Freddie through its CME multi family mortgage loan execution path. The loans will be bought from approved lenders in Freddie’s network, pooled with other eligible loans, securitized by Wall Street investment bankers and sold to the public.

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MasterPlan Capital LLC; Commercial and Multi-Family Mortgage Loans, Equity Financing & Asset Management.  View our commercial real estate finance services, see how we do business or apply for a commercial mortgage loan. Our simple (1 page) commercial mortgage request form takes only a moment to complete and you will receive prompt, professional service.                                        

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Liquidity is, of-course, welcome as we continue to work out of our credit malaise, but as we have said before, it is somewhat disconcerting that such a large percentage of all multi family lending must come from the Government.

Click Here to Learn More about Freddie Mac Multi Family ARM Loans.

MasterPlan Capital Rolls out new CMBS Commercial Mortgage Platform for Multi-Family (apartment building) Loans.

December 21, 2010

MasterPlan Capital is pleased to announce that, through a strategic partnership with an established CMBS lender, we are now able to offer our clients CMBS loans against multi-family (apartment building) properties.

 The parameters for the CMBS program will be as follows:

Collateral:  Multi-Family,  LTV: to 75%, DSCR: 1.25x or better, Loan Size: $5mm-70mm, Area: Population Centers, Eastern US, Terms: 5, 7 & 10 years, Amortization:  25-30 years, Recourse:  Non-Recourse, Underwritting: Full, Rates: 5%-7% (subject to change)

Clients and prospective borrowers can apply for a CMBS commercial mortgage online. Our Simple, 1 page, commercial mortgage application takes only a moment to complete and all inquires will receive prompt, professional attention.

Commercial Mortgage Lenders – Government Agencies Dominate Multi-Family (Apartment) Mortgage Sector

October 23, 2009

There is not much liquidity for commercial mortgages in the retail, office or hospitality sectors of the commercial real estate industry, but there’s plenty of capital available for multi-family (apartment) buildings. The good news is that the Government is lending massive amounts of money against apartment properties; the bad news is that no one else is.

Virtually all the institutional loans being made today to purchase, refinance or build apartments are being funded or otherwise supported by Fannie Mae, Freddie Mac, The Federal Housing Administration (FHA) or The Department of Housing and Urban Development (HUD).

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Click Our Logo To Visit Our Website

For almost 2 years now, these Government Agencies have been the primary lenders to the rental housing industry. They stepped in to counteract the liquidity crisis that was caused by the collapse in the commercial mortgage backed securities markets (CMBS) and, almost by default, have become the only game in town. Even the banks who claim to be lending right now are, in reality, just originating loans and selling them to Fannie or Freddie.

As the economy improves traditional multi-family lenders, such-as insurance companies, smaller regional banks and Wall Street investment houses, would like to re-enter the market place with their own commercial mortgage offerings.  Unfortunately for them, they are finding that they can’t compete with Uncle Sam who, of course, can simply print the money that it uses to lend.

Fannie and Freddie could maintain their dominance in multi-family finance indefinitely, but they won’t. They are lending at such levels because no one else can. As the economy improves and real, traditional banking becomes profitable once again, Government Agencies will retreat and allow the markets to provide the necessary capital. When that happens rates will be higher but the increased competition will mean more people will be able to qualify for loans.

Those lucky enough to meet the requirements of a Government Agency loan ought to apply now. When the time comes to lure lenders back into the market the Government will make itself less attractive by further tightening their underwriting criteria and lowering their loan-to-value ratios.

To secure the most favorable rates, terms and conditions that Government sponsored lending has to offer, a borrower must have decent credit (640 or better FICO) and a sound balance sheet that includes some liquidity (cash in the bank). Fannie and Freddie will lend up to 80% LTV but most loans that they are accepting now are in the 70%-75% LTV range. The property must be able to pay its own mortgage with a debt-service-coverage ratio (DSCR) of 1.2% or better and the building has to be stabilized (history of profitability). It goes without saying that the property must also be in good condition with little deferred maintenance necessary. The Government is sponsoring loans in all 50 states in-order to benefit the rental markets nationwide.

Loans typically come with 3, 5, 7 or 10 year terms and are amortized over 25 years. Currently rates are at historic lows due to the weak economy.

Apartment owners can get Agency backed loans through their local banks, larger national banks and through many other commercial mortgage lenders who enjoy direct and indirect relationships with Fannie, Freddie, FHA and HUD.  You can’t apply directly to the Government.

Property owners who don’t qualify for agency loans will have to pay more to a private lender or work to meet Government requirements.

It’s good to know that there is liquidity for multi-family investing, but it is disconcerting to realize that the only willing and able lender is the US Government. As things improve this should change.

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Commercial Mortgage Lender; MasterPlan Capital LLC – EZ Online Application – Fast Response

Apartment Owners: Little Tax Tips Can Save Big Dollars

March 9, 2009

One little tax tip can save an apartment owner big bucks. If landlords are not following the “Crucial Tax Tips” series over at the American Apartment Owners Association (AAOA) Blog then they should be.

 

MasterPlan Capital provides private and institutionally funded commercial mortgage loans for apartment building owners and investors. We are proud to be members of the AAOA.

Government Sponsored Loans for Apartment Buildings; Billions Available to Lend for Purchase and Refi of Multi-Family

March 1, 2009

Thanks to Uncle Sam there is no credit crunch in the multi-family sector. Borrowers buying or refinancing stabilized apartment buildings will have no trouble securing a loan approval as long as they have some equity in the deal and have decent credit. Fannie and Freddie are lending like crazy; hundreds of billions are committed to multi-family.

 

And it’s easy to apply.

 

Property owners and investors can visit us on the web to learn more. Just click the link:

 

Commercial Real Estate Mortgage Loans – MasterPlan Capital LLC

Plenty of Capital for Apartment Building Loans, Forget (Raw) Land Loans

March 1, 2009

Forget land loans! There is no liquidity in this market for loans against un-entitled land.

If you want to speculate on raw land you’re going to have to do it with your own money.

 

There is plenty of capital for quality, income producing buildings like apartments (6 units +)  and leased up office buildings, but wana-be land barons need not apply.

 

Commercial Mortgage Loans Against All Types of Income Producing Real Estate – On-Line – Apply On The Web – Fast, Honest Replies – Quick Closings Available. MasterPlan Capital LLC; Commercial Real Estate Investment Banking

Commercial Mortgage Loans; Commercial Real Estate Investors Can Still Get Loans for Apartments – Plenty of Money for Multi-Family Lending

January 16, 2009

The credit crunch has devastated the commercial mortgage industry. Virtually no institutionally funded (bank) commercial mortgage loans are being written for development, construction or against underperforming properties. That means no land loans, and no rehab loans. Certain areas of the country have been completely red-lined by the big national banks, Wall Street brokers and Hartford insurance companies. If you want to invest in FL, NV, MI or parts of CA you can forget getting a low interest bank loan. Hard money, privately funded loans are the only game in town for most commercial real estate professionals today.

There is, however, one notable exception; apartment buildings. Multi-family properties are still being funded even during this slow-down. Apartments tend to hold up well even in recessions; after-all people have to live somewhere.

The real reason multi-family loans are still being written is because Fannie Mae and Freddie Mac are still buying them. There are billions of dollars in liquidity for apartment building loans thanks to Uncle Sam. The banks know that the loans they make can be turned into cash at a moments notice by selling them to Fannie or Freddie so they are not afraid of extending credit against good quality apartment houses.

That is not to say that standards have not tightened in the multi-family sector, they have. To qualify an apartment building or complex has to be “stabilized” which means that it must make enough money to pay its own mortgage. Lenders will look for a debt-service-ratio (DSCR) of 1.25 or better. The borrower must have a decent credit score upwards of 640 and should have some experience running apartments. Most loans are being written at between 70% – 80% loan-to-value ratio (LTV).

The really good news is that rates are quite low right now. Many property owners are locking in rates under 7% right now (Jan. ’09). Some lenders are willing to fix these low rates for 5, 7 or even 10 years. Loans are typically amortized over 25 years, so payments are low and profits can be high.

There are not many bright spots in the world of commercial real estate finance but lending against apartments is truly one of them.

Apartment Building Loans – 5 Year Fixed – 6.5% (subject to change) – To 75% of Value (75% LTV) – Purchase or Refi – MasterPlan Capital LLC – Easy, 1 Page Commercial Mortgage Application, Online – Quick Response – Professional Service