Apartment Hard Money Loans are Offered by Apartment Hard Money Lenders
Hard Money Loans for Apartment Complexes
Hard money loans are available for apartments and apartment complexes. Perhaps you currently own apartments and need funds for improvements. Maybe a new apartment complex has come up for sale but your current credit situation, or the circumstances of the property won’t allow financing through conventional conforming loan channels like banks and mortgage brokers. You may be a good candidate for a hard money loan.
Reasons for Applying for Hard Money Loan
• Credit maxed out
• Property in remote location
• Property not of conventional construction
• Value based on land alone
• Value cannot accurately be determined
• Potential income from property cannot be verified
You can find hard money lenders nationwide: private investors, mortgage companies, or banks that deal in hard money financing to help finance the purchase of the apartment complex. If you deal with a hard money loan broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. The apartment complex itself will be the collateral that secures the loan and lender may ask you to put up other assets to consummate the deal. Hard money lenders typically finance only a percentage of the purchase price or apartment value— usually 65% to 75% (Loan to Value Ratio). Since the apartments will produce income, a loan can be based on the value of the property plus its income producing potential. Interest rates may run anywhere from 8% up, and may initially be fixed, but later become variable.
If you have experience in the apartment rental business that is typically considered a plus. Be prepared to give the lender the following in addition to color photos of the land and any buildings.
• Location of the property
• Estimate of closing date
• Date of purchase
• Purchase price
• Estimate of fair market value
• Reason for applying for hard money loan
• Gross income
• Yearly expenses to be incurred on property
• Appraisal if available
Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Apartment loans. No guarantee is offered or implied as to their accuracy. Hard money Apartment loans are non conforming, they do not conform to the underwriting guidelines of Fannie Mae or Freddie Mac. Each private equity hard money lender has their own fee structures which may include points at closing and early prepayment penalties. Discuss all of the details of your particular hard money Apartment loan including all costs and fees with your selected hard money lender.