How to Secure a Commercial Multifamily Mortgage Without the Hassle

One of the obstacles that often prevent people from taking the steps to secure a commercial multifamily mortgage is the overall complexity of the process. Getting a commercial mortgage can involve a more in-depth transaction experience than one might expect with residential mortgages, and would-be property owners need to aware of both the challenges and opportunities.

However, if you take some helpful steps before you submit your application, you can eliminate much of the back and forth and secure a commercial loan to get your new venture underway.

Here are 3 list items that will help make the transaction process run as smoothly as possible:

1.    A Realistic View of the Property Value

People seem to have a tendency to overvalue a property when selling and undervalue when buying, neither of which will serve you when looking to purchase commercial real estate. It’s important to have a realistic view of the property value for every investment property that interests you, even if those numbers aren’t ideal. If you go looking for a commercial loan and aren’t aware of the true value of the property, you may have difficulty securing your desired loan amount. Instead, lenders will delay the process while they work to determine the property’s true value.

2.    A Long-Term Investment Strategy

If you want the multifamily loan process to go as smoothly as possible, showing the lender a long-term investment strategy will help. In any business venture, lenders want to see that the person or business seeking a commercial mortgage is organized and has a well-thought-out plan on how to succeed and make the business grow. Many people that want to buy multifamily commercial real estate believe the fact that there are tenants paying rent is enough, and while it’s important, showing you are thinking toward the future goes a long way.

3.    A Rent Roll for the Property

That being said, showing the rent roll for the property will show that it is generating revenue. If the plan is for you to step in and assume control of the property and all of the monthly rent money, then your lender will want that information and it will help the process move along more smoothly.

Other Factors to Consider

As you prepare to shop for a commercial loan, you may also want to consider the location of the property, the lease terms of the residents in the property, the overall condition of the building and whether or not the business has a positive cash flow. These factors will play a part in determining not only whether a lender will approve your loan request, but also the type of loan and amount of funding you’ll be able to receive.

Understanding the Different Types of Lenders

Every lender is unique, so it will benefit you to have a firm grasp of the different types of lenders available in today’s marketplace when you are looking for commercial real estate financing. Banks are the traditional go-to for many would-be multifamily property owners, but more people are turning to non-bank alternatives like InvestmentProperty.Loans for a simplified process and greater flexibility.

If you’ve been thinking of purchasing a multifamily commercial property and want the best possible chance of getting a mortgage without the hassle, visit our site today and we can get the process started.