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For some, purchasing a multifamily
housing property and obtaining the most
appropriate apartment building loan can
be a daunting task. In general, by
preparing and implementing a few of the
steps outlined in this tutorial, your
multifamily housing loan will flow
smoothly and effortlessly.
A multifamily
housing property is defined as a
multi-unit dwelling containing 5 or more
units, more commonly referred to as
apartment building, apartment complex,
or multifamily housing.
In this
installment of the Apartment Building
Loan Purchase Guide, the focus will be
on apartment lender required
documentation. For the most part, the
required documentation for an apartment
building purchase is the same or very
similar for most apartment lenders. The
one exception is
stated income apartment loans, which you
can learn more about here.
For an
apartment building purchase, it is
important to gather some basic
documentation on the subject property as
soon as possible. An apartment lender
will first request the property's rent
roll and income and expense statement.
After all, if the property doesn't show
a profit with the ability to service the
new debt (DSCR),
the the apartment mortgage loan required
for purchase, the loan request will
usually be denied. To ensure your
apartment lender has ample time to
process the loan for your apartment
building purchase, gather the remaining
initial due diligence documents on the
subject property; leases, rent
concession or subsidized documentation,
survey or plat map, photos, and any
environmental information such as phase
1 or 2 reports. |
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