Do you remember the good ol’ days when you could get a multi-family loan at 75% LTV, using stated income & stated assets, with little to no fees? Well, those days are long gone!
What we do have today is a mixture of large commercial banks and small credit unions who have all lowered their LTV (fewer loan dollars), increased their fees, and have a whole new set of requirements for borrowers.
How does that impact you if you are not in the market for a new loan?
While it may not affect you directly, indirectly it impacts the product you own and potentially could force CAP Rates in an upward direction which means a hit to property values. Bottom line: whether you plan to buy, sell, or hold real estate, the commercial lending market impacts you as an owner of multi-family properties.
In today’s show, I interview Gil Figueroa, a 30-year Commercial Broker Veteran, on all things multi-family loans. We cover everything from new lending requirements to the direction of interest rates, and we discuss how to maximize your profit in these turbulent times.
The next few minutes will empower you as a consumer, landlord, and investor.
Gil and I discuss YOUR questions:
• How has the landscape of multi-family loans changed today?
• How do you ensure you are getting the best rate and terms?
• What are the different requirements when it comes to a purchase loan versus a refinance loan?
• Some banks are requiring COVID disclosures regarding tenant payment history, what does that mean to the prospects of a new loan?
• How do landlords qualify for a loan based on today’s requirements (investment resume, credit score, cash reserves)?
• What’s the difference between a commercial loan and a residential loan, and why could an investor qualify for a multi-million dollar commercial loan, and not qualify for a simple single-family residential loan?
• How has the volatility in the bond market and the stock market affected commercial loans?
• How can a small change in interest rates have a big impact on commercial loans?
• What direction are interest rates headed, and should we get access to our equity now?
WATCH NOW as Gil and I discuss real strategies to leveraging your equity, ensuring maximum cash-flow, and prospering as a multi-family investor.