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The Beauty of Leverage in Multifamily Investing

Using Leverage to Increase Your ROI

When deciding how to invest your hard-earned money, multifamily investments continue to be a source of above-average returns. Data from a recent study forecasts a healthy economy and even more lifetime renters as interest rates rise and the housing market shifts.

Some refer to profits from real estate investments as “mailbox money”—checks that show up in your mailbox from your savvy real estate investments. But how can you increase these returns? The answer is simple—so […]

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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 […]

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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 […]

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Let Your Personal Financial Statement (PFS) Do the Talking

Why Your Personal Financial Statement (PFS) Will Get You in the Door

The financial world has acronyms galore, but one essential term is PFS: personal financial statement.

A PFS summarizes your assets and liabilities and provides a snap shot of your total net worth. You’ll need to generate a PFS when you apply for a multifamily loan program. But as a savvy investor, you should be doing more than simply filling in the blanks on a financial worksheet. You should understand […]

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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 […]

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Location and Loan Rates: A Critical Intersection in Multifamily Investing

Why Location, Location, Location Begs Repeating in Multifamily Investing

Location: a word so nice we say it thrice. The saying Location, location, location is oft repeated in real estate—for good reason. As the money managing site The Balance puts it, “You can buy the right home in the wrong location. You can change the structure, remodel it or alter the home’s layout but, ordinarily, you cannot move it. It’s attached to the land.”

When buying a single-family home, you may think […]

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Learning the Basics of Multifamily Bridge Loans

In many cases, the amounts of money involved in many areas of commercial real estate are large enough to necessitate additional financing not commonly found in other areas of the industry. A good example is the multifamily bridge loan. This is a loan that brings immediate financing and offers the chance for a quick closing while the borrower waits for a longer-term solution to become available.

At Bonneville Multifamily Capital, we offer multifamily bridge loans ranging up to […]

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4 Common Refinancing Mistakes to Avoid in Multifamily

At Bonneville Multifamily Capital, refinancing a multifamily real estate loan is one of our specialties. We’re here to help find you the perfect multifamily lender for your refinance, and put you in a position to open up significant financial flexibility.

Refinancing can be a great way to open a few things up, but if you make the wrong choices during it, it can also be a way to complicate your finances even further. Let’s look at a few of […]

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Is My Credit Score Important for a Commercial Multifamily Loan?

The short answer is YES. While the financial performance of the underlying asset takes precedence, the credit and financial strength of the sponsor is also underwritten.

In any loan application situation, whether it’s a standard home loan, a multifamily commercial loan or any other type for that matter, your credit score is an important consideration for lenders. It can define which loans you’re eligible for, plus the rates and other benefits for which you qualify.

Obviously, a high credit […]

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3 Reasons to Refinance Your Multifamily Property Now

Debt is an integral part of real estate for most investors. There are a myriad of different strategies and schools of thought regarding debt and real estate. The purpose of this post is not to offer ideas on which approach is best, but to simply to offer 3 compelling considerations as to why it makes sense to take a hard look at your existing debt on your commercial multifamily real estate.

1. Interest Rates are Still Low, But on […]