Top 5 Reasons to Justify Why Apartment Building Loans Are a Great Investment in 2018

When people at first hear about the millions and billions of dollars investors make buying and selling properties, most of them think about duplexes and individual homes. A good number of people don’t know much about buying apartment buildings. The merits of investing in apartments are out of this world. Investing in apartment buildings can be one of the ideas even when the economy is going sideways. Even though there are advantages and disadvantages to every kind of investment, investing in apartments is not a bad idea.

Why to Invest in Apartment Buildings in 2018?

·         It gives a predictable source of income to the owner/investor

·         Provides a more affordable housing option

·         Property appreciation

·         Principal reduction

·         Tax benefits

·         Numbers determine the value of the apartment building

Low rates on commercial loans are just one factor that draws investors’ attention towards apartment buildings. That’s understandable! The idea of acquiring one single-family unit at a time is something that’s comfortable to wrap your arms around. But is it the best use of your hard-earned money and more imperatively your time. Just because commercial loans are easy-to-get; it doesn’t mean it’s worthwhile. Thanks to the tech-updates, you can buy a rental house online with a simple click of a button. However, will it be going to help you getting any closer to creating true wealth for you and your family? Think about that for a moment!

Just like any other investment strategy, you must understand the fundamentals to be successful. The beauty of apartment building loans is that it’s a commonsense investing. 

Let’s have a look at the benefits of owning an apartment building.

Market Strength: As an inherent means of survival, apartment buildings stay steady and don’t experience the dramatic changes that retail and office often experience. Apartment buildings are the least risky real estate asset class and all demographic indicators suggest it will be a strong market for years to come.

Equity Accumulation: Multiple tenants pay down your mortgage. With fewer deals, you can amass a sizeable portfolio of assets for legacy planning in far less time. 

Leverage: Today’s low-cost debt won’t last forever. The cost of capital has never been more attractive, and there is diverse set of apartment building loans to choose from. Now is the time to lock in long term debt and pay down significant principal over time.

Cash Flow: Stock portfolios do not create cash flow unless the stock pays dividends. Apartments traditionally have more stability than stocks.

Hard Asset: An apartment building is not a paper asset. If you buy the deal right, its value can never go to zero. Apartments are universally considered an excellent inflation hedge. 

Types of Apartment Building Loans for Investors:

•          Small Balance Apartment Building Loans: Smaller apartment building loans for multifamily properties are available now to apply online for a loan amount up to $3 Million and are directly available from the lender. The small balance apartment loans offer many lending advantages including less paperwork and faster closings than ever before.
   
•         Mid-Size Apartment Building Loans: The mid-size apartment building loans vary from $3million to $8million. The mid-size apartment building loan program has been developed to serve the needs of your important multi-unit commercial assets. This loan type can benefit the needs of investors with excellent delivery time and substantial cost savings.
  
•         Large Apartment Building Loans: The large sized apartment building loans are designed to finance loan amounts in excess of $30 million and are often structured with flexible terms to help the borrower meet their objectives.        

Things to See before in Apartment Building Loans

•         Keep your payments down with long-term apartment building loans
•         Can be a mixed use of property
•          Very competitive interest rates

Apartment Building Loans Requirements:

•          Multiple adjustable rate programs are available
•         Amortization up to 30 years
•          Prepayment and penalty varies with individual loan
  

To check your eligibility and qualifying status for apartment building loans, do contact ALB Commercial Capital. The loan advisors at ALB Commercial Capital are highly experienced and can let you understand the perks of apartment building loans thoroughly. Get in touch quickly for more information about apartment building loans.

Top Tips for Getting Best Rate Apartment Loans Offer without any Hassle

Apartment Loans San Diego

 Buying a new home can be an exciting and sometimes overwhelming endeavor. Part of the challenge is finding the best rate apartment loan that is right for you. However, apartment loans can be sometimes short-term or permanent loans that fund the purchase and/or renovation of an apartment building with rates from 5% to 12%. Investors typically use best rate apartment loans to purchase properties with more than five units that can often generate cash flow, build equity, increase leverage or earn capital gains. 

Confused which lender should you consider while choosing a best rate apartment loan? If yes, then you should consider asking these top tips from your apartment loan lender.

·         Tip 1: Keeping the interest rate low for the people seeking best rate apartment loans are important but make sure you don’t go behind the cheapest rate of interest. You need to focus on broader aspects of apartment loan and thus look out for a more competitive price. Running behind the lowest interest rate is not a wide idea often.

·         Tip 2: Do a proper homework before opting for a best rate apartment loan. Don’t get influenced by your relative, friends or colleagues or even from your past experiences. 

·         Tip 3: Make sure you choose a lender that will offer you daily reducing balance instead of a monthly reducing payment. One of the biggest demerits of monthly reducing payment is, for instance, you close an amount in between the date of two EMI; then they choose the repayment plan only from the due EMI date. You might be unaware of this, but this can cause you to pay a lot extra. 

·         Tip 4: Go through the reviews that are available online about a particular lender. Make sure you go through each of the reviews as most of them are false and are being created using anonymous IDs. So, before believing on the reviews makes sure you cross check the ID from which the reviews are being generated.

·         Tip 5: Do consult with your mortgage advisor and ask to provide detailed information for at least six major lenders and if they could provide loan against property. Don’t get biased by choosing the lender with the lowest rate of interest. Look out for various factors such as the margin offered, the no of times the lender has brought down the rate of interest, the tenure period that is allowed, and if he has financed a property which is similar to what you are buying.  

·         Tip 6: Best rate apartment loan process can account into a lot of time. It is considered very important as the builder of your dream home can send you delay penalty notices as well as withdraw him from the deals or even in few cases might increase the rate of the value of the home that you were considering buying. There would be no use to choose a lender who can only offer and can’t execute.

·         Tip 7: Consider the service perspective as the priority as you would be indulged in a long-term relation. Don’t rush in or choose a lender that offers a lesser rate of interest. Taking advice from your friends and family is fine, but make sure you don’t trust them blindly without doing your calculation. Also keep a hawk eye on post sales aspects such as provisional amortization, part closure services, tax certificates to name a few.

·         Tip 8: Choose the people that are best in this industry which could be your bank relationship manager, charted accountant, or perhaps a CFO in your office. They can best help you to reach the best mortgage broker offering best rate apartment loans.

·         Top 9: Consider choosing a floating rate of interest as compared to a fixed rate of interest. The primary reason is simple: a lot of twists can happen in fixed rate of interest. Moreover, it enforces foreclosure penalty which applies to the fixed rate of interest.

·         Top 10: Try considering new age products that can help you save a lot of bucks as borrowers these days have a lot of requirement rather than just borrowing for the sake of money. 

Choosing a trusted lender for best rate apartment loans is though look like a daunting task, it’s not anymore with the advent of web-based features. There are a lot of websites that offer best rate apartment loans but the best among them is ALB Commercial Capital simply because of its hassle-free process. Additionally, it has a support team of experienced loan advisors that serves you 24*7 in the case of any problem or queries. You can apply for best rate apartment loan after going through the above pointers in case you want to buy your dream house.