Re: buying apartments - Posted by ray@lcorn
Posted by ray@lcorn on June 01, 2006 at 18:53:46:
Good question. You’re correct, if you call a bank and ask for apartment financing the standard answer will be 15-20 year amortization, floating rate, 75%-85% LTV with at least some cash invested, usually 10% or so.
Many non-bank lenders won’t allow the flexibility of any seller financing, or conditioned to maximum cumulative LTV. You either fit their loan criteria or not, no exceptions. So you have to first choose what type of lender is right for the deal.
There are over two dozen types of lenders, and banks are only one of them. A deal like this is when it pays to develop a good relationship with more than one lender, each of whom understand your business, your resources and track record, BEFORE you need the money. With an ongoing, working lender relationship the terms can be developed to fit the deal, rather than vice versa.
It also helps to understand what kind of loan to ask for. Not all lenders have all loan types. A bridge loan is a combination a short-term (