Multifamily Refinancing, The Right Choice for You
By Amir Maloumi
If you are involved in the ownership of a multifamily rental project, you are on pretty strong ground. The multifamily market will never fall there will always be renters. That is why lenders consider multifamily mortgages and refinances a good investment.
Some apartment owners are reluctant to refinance because they are afraid they will not be able to keep their units rented. They are concerned that, with the recent housing boom, renters will become scarce. That is simply not what is happening. Rental properties are still in demand because many people have been priced out of the market. In addition, many apartment buildings have been converted to condominiums and townhouses, and that has depleted the supply of available rental units.
Multifamily apartment buildings continue to be a solid, reliable investment, and that is not likely to change. Lenders are not overly concerned that your property value might drop. They know that people will need somewhere to live, and that you will be able to keep your multifamily building rented.
Lenders are concerned about your previous payment history. You may be able to refinance even with a spotty payment history. If, however, your credit history is spotless, you should be able to negotiate a lower interest rate and more favorable loan terms.
By refinancing your apartment buildings, you could save yourself thousands of dollars. You will lower your monthly loss, and may be able to take years off of your mortgage. Even if you have to pay finance fees and other costs, refinancing the mortgage on your multifamily apartment building could save you thousands of dollars.
You can find commercial real estate lenders anywhere. You can get referrals from friends, look in the phone book or look online. You will find many eager commercial lenders to choose from. Different financial lending institutions offer different refinancing options. To find the best deal, check out several different commercial real estate lenders. Here are some things you might want to check out:
What fees will be involved?
Will taxes and insurance be rolled into the monthly loan payment? If not, be sure to consider these added costs before making your decision.
What kind of experience does the lender have with buildings the size of yours?
You will want to choose a lender that has a lot of experience in dealing with very large amounts of money. You will want to make sure that your lender fully understands the debt/income ratio level that comes along with multifamily apartment management. You want a lender that is comfortable in dealing with both large, multimillion-dollar apartment building financing and with smaller properties.
There will always be a market for apartments. Multifamily apartment buildings will always be a sound investment. It can be an even better investment if you can reduce your mortgage by refinancing. Real estate interest rates are beginning to rise. If you have not refinanced yet, you will want to do it now, before rates get any higher.
About the author
AIM is a commercial finance consulting service and Amir Maloumi is the director of AIM.
"http://www.aimfinanceconsultant.com" from http://www.FreeArticlesAndContent.com
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