Apartment Loans – Small Balance Loans
Apartment loans with loan balances the size of those categorized as Small Balance Loans have been traditionally hard to come by in the ‘new’ economy, especially those with loan amounts from $1 million to $5 million and having interest rates below 5%. However, today commercial real estate investors who specialize in investing in apartment buildings and smaller apartment complexes now have an outlet that allows them to obtain apartment loans that can be below 3% on amortizations of 25 years!
Apartment Loans – Refinance
Apartment loan refinance in the small balance loan category are becoming increasingly attractive to investors under this new loan program. For a rate and term refinance of an existing small balance apartment loan real estate investors can expect interest rates which start as low as 2.875% with fixed periods up to 10 years and amortization periods up to 25 years.
With apartment loan rates this low refinancing may even make since if there is a prepayment penalty involved. With loans where the rate is over 5% and/or may have a shorter amortization period, the monthly cash flow created by the payment savings is so significant that paying the penalty and refinancing to the lower rate is a no brainer.
Apartment Loans – Acquisitions
Small balance Apartment Loans are a great way to obtain additional apartment buildings or small apartment complexes to add to an investor’s portfolio. Using these apartment loans gives real estate investors unprecedented loan to value ratios of 80% plus the low advantage of low interest rates in the mid 3% to low 4% range.
Apartment loans for the acquisition of apartment buildings in the small balance loan category have fixed terms of up to 10 years. Additionally, these longer fixed terms come with a long amortization period of 25 years making the payments for purchases between $1.5 million and $6 million very attractive!
Apartment Loans – How to Apply
Real estate investors seeking apartment loans for refinance or acquisition can apply online, click here, or can send detailed questions to the experts at Dividend America Commercial Lending. Contact Michael Gross, President, by phone at 404-549-6756 or email .
Lending in all 50 states and focusing on Multifamily Financing and Apartment Loans in the markets and submarkets listed in the S&P Case Shiller Home Price Index and the surrounding secondary markets to those cities. We look for opportunities in: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.