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.
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