multifamily construction loans

Weighing Your Loan Options for New Construction Financing

Building the Right Financing Package for New Construction Loans

New construction spending is reaching all-time highs—what an exciting time to be a part of the ever-evolving real estate market. Forging ahead in both the established and emerging development markets are new mixed-use properties and multifamily builds.

As lending specialists, we’ve seen developers and investors use a myriad of tools to get their projects built. Just to name a few, funding sources can come from:

An individual’s own cash and capital
An […]


Why, What, When, and How? Preparing A Schedule of Real Estate Owned (SREO)

Simplify and Speed Up the Underwriting Process by Preparing Your Schedule of Real Estate Owned (SREO)

You’re in the driver seat when preparing documents to hand over to lenders and underwriters—these statements should help you put your best foot forward when buying your next multifamily investment property. They can be the extra push or reassurance lenders need for you to secure a great property.

A valuable document to have readily available is a schedule of real estate owned (SREO), also known […]


When is a Full Recourse Loan Acceptable?

The answer to that question is, complicated. Let’s start with a simple definition and talk through some of the scenarios that make sense.

A recourse loan is a loan where the borrower is personally liable for repaying the outstanding balance of the loan, above and beyond the underlying collateral. For example, in a worst-case scenario where the underlying asset must be liquidated, the borrower is still on the hook for the unpaid balance after the liquidation.

In a non-recourse loan, the borrower is not […]


Why a Carefully-Crafted Investor Resume Is the X Factor for Approved Multifamily Funding

Creating an Expert-Level Investor Resume: 101

You’re ready to invest in your next multifamily property. You’ve found the right property in the right location, you’ve chosen a broker to help find you the best loan—but now it’s time to actually get the funding. While choosing a location for your next multifamily investment may be the first big hurdle in the buying process, acquiring the loan necessary to complete the deal is a series of events you can’t overlook. The better […]


Don’t Get Caught Flat-Footed When It Comes to the Debt Service Coverage Ratio (DSCR)

What the Debt Service Coverage Ratio Means for You and Your Loan

Across the country, the commercial multifamily market has seen incredible increases in values. Investors are flocking to the opportunities and returns that are possible through multifamily investing. Forbes predicts slow and steady growth for commercial real estate well into 2018 and beyond as investors ride the waves of the long period of economic recovery following the 2008 recession.

As demand from buyers looking to gain entry into multifamily investing […]

Multifamily Credit Risk_Chess

4 Factors that Qualify You for Multifamily Financing—Are You a Good Risk?

Every real estate investment involves risk. When considering a potential multifamily investment, you have to ask yourself, “Is this a good risk?”

Once you’ve done your own calculations and are ready to talk to a lender, it’s the lender’s turn to consider, “Is this investment a good risk for me as a lender?” And even more pointedly: “Is this client a good risk?”

In commercial real estate finance, A lender’s decision to provide millions of dollars in capital is based both […]

Miami Real Estate

Understanding BSPRA on an FHA 221(d)(4) Loan

Raising equity in any real estate deal is a hurdle that must be successfully navigated to find success. Equity investors make many real estate deals possible when the equity requirements exceed the sponsors capabilities or risk tolerances. Conversely, increasing leverage means using less “raised equity” so the sponsor retains more profit and ownership.

Accessing the highest leverage percentages in the industry is very attractive to developers, because they want to preserve cash for their next project. This is usually one […]

Person typing important real estate documents

3 Documents That Every Real Estate Investor Needs On-Demand

“You only have one chance to make a first impression…” You’ve heard it a hundred times, yet how many times have you spent time perfecting your first impression? As a direct lender, I interact with hundreds of new real estate investors looking to make the jump from residential multifamily properties to commercial multifamily properties. I can tell you that in many cases, the Personal Financial Statements, (PFS) lack quality and appearance, both of which can be easily improved […]

Apartment Complex

What is MIP in HUD Multifamily Loans?

Mortgage Insurance Premium, commonly referred to and abbreviated as MIP, is something unique to FHA Multifamily loans. The Federal Housing Administration (FHA) is a division within the U.S. Department of Housing and Urban Development (HUD). The purpose of the FHA is to provide mortgage insurance on loans made by FHA-approved lenders throughout the United States.

FHA insures both single family and multifamily properties. In the multifamily commercial world these loans are commonly referred to as HUD loans. Technically, HUD is […]

HUD Lending

What to Look for in a HUD Multifamily Lender

Every experienced multifamily investor knows that most commercial mortgages run for a 10-year term with a balloon payment due at maturity.  This sets the stage for needing multiple refinance transactions throughout the life of the loan until the property can be paid off, while continuing to generate maximum cash flow.  The cost and amount of effort to refinance every decade can be a significant use of resources over the life of the mortgage.

Look at recent history, and put yourself […]