Many apartment building investors contact Winston Rowe & Associates about their apartment building financing solutions.
They have prepared this article to provide an understanding of the approach and methodologies utilized by commercial real estate lenders and due diligence advisor firms when reviewing your financing request as well as the supporting documents required, to obtain apartment building financing.
Commercial real estate investors who would like more information about Winston Rowe & Associates can contact them at 248-246-2243 or email to; firstname.lastname@example.org
Also investors can check them out online at http://www.winstonrowe.com (http://www.winstonrowe.com/)
Building Location & Type:
First, apartment buildings are great investments. However, as with all real estate a good location is key.
The best buildings are located within major metropolitan areas with low crime, good employment opportunities and easy freeway access.
Do Your Due Diligence:
You found an apartment building you are interested in. The first question you want to ask the seller is; why is it for sale? Keep in mind, business people almost never get tired of making money.
Before you prepare an offer for the apartment building, you need to conduct a due diligence investigation.
This is the phase where you look for the hair on the deal. The ensuing is a general overview check list that Winston Rowe & Associates advises prospective clients to utilize.
Property Location Check List:
Check other apartments in the area to make sure the current rents are in line with the market?
Is there going to be any major road construction schedule in the next 60 months?
Is the apartment building located within 10 miles of major employers?
How far is the retail shopping? Most people don’t like to road trip to the grocery store.
If you’re looking buildings that cater to students, seniors or corporate renters for example, make sure the apartment building will meet those renters’ specific needs.
Look at what your future competitors offer.
The property checks out and you want to make an offer to the seller.
Most sellers will only provide a Profit and Loss statement with no supporting Tax Returns or business financials.
Beware of this. Without the complete business financials, rent rolls and schedules of past improvements you have no way of verifying that the apartment building is making money.
Paying Too Much:
Distressed apartment buildings are excellent opportunities for commercial real estate investors. However don’t over pay because the future value will make the property double in price.
No one knows what the future economic conditions of the current rental market will be.
The future value based on improvements, this will be based on your hard work, not the sellers.
Don’t accept a seller’s appraisal as the value of the property. In many cases the seller ordered the appraisal from a friend or the appraisal is not at arm’s length.
The best way to determine value is to look at what similar apartment buildings have sold for in the area in the last 12 months.
Check out our website, we have great third party real estate evaluation and listing links.
Getting An Apartment Building Loan:
It’s always best to contact a commercial lender before you start your search for an apartment building.
For example Winston Rowe & Associate will provide prospective clients with a check list of the supporting documentation that will be needed as well as the rate range.
Winston Rowe & Associates has a streamlined best business practices model they utilize and are able to complete most commercial loan transactions in a few weeks, not months.
They provide no upfront or advance fee commercial loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming
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