Financing is available for investors who need money to buy multifamily properties. Whether a tiny project requires $100,000 or more than $2,000,000, a reliable lending firm   should be able to expedite the funding request for a qualified buyer. As a reputable   resource for self-employed borrowers, Direct Apartment Lenders offers loans for small   balance apartment buildings throughout the United States.

 Why Consider Small Balance Apartment Loans?

 Multi-million-dollar apartment loans are desirable among commercial property lenders. 

 Similar to an investor who prefers to buy apartment buildings versus two-unit properties,   multi-million-dollar commercial mortgage loans provide lucrative opportunities.

 However, funding is offered for small balance apartment buildings through some niche-based apartment lenders.

Investors can find a variety of small properties where the monthly rent rolls amount to a tidy sum. 

Some investors might prefer to obtain an apartment loan for a $5,000,000 property, while other investors may want to use small balance apartment loans to buy ten different properties for $500,000 each.

With smaller loan sizes, an apartment lender can spread a pool of money among a larger number of investors who need money to buy a duplex or a five-unit apartment building.

What are the Features of a Small Balance Apartment Loan?

The guidelines for a small balance apartment will vary among apartment lenders.

Typically, the maximum loan size is around $2,000,000 or less.

Direct Apartment Lenders offers small balance apartment loans throughout the nation.

Some of our general guidelines are shown below:

• 1-4 unit SFR 
• 5-100 Unit apartment buildings
• $100,000 - $2,500,000 Minimum loan size
• 5/1 - 7/1, 10/1 ARM - 30-year fixed rate
• Mortgage rates starting at 6.99% 
• 1-2 % Loan origination points (paid at closing)
• Clean title report
• 600 Minimum credit score

Investors who need to close quickly are encouraged to apply online for our small balance mortgage loans. We can underwrite and fund small apartment loans within a few weeks.

Finding Cheap Apartment Buildings

Low-cost apartment buildings exist in many areas of the United States. Although, an investor may have difficulty locating inexpensive commercial properties.

While it might sound cliche, an investor may need to knock on some doors or to pound the pavement to find a diamond in the rough.

Calling or visiting several real estate agents to inquire about small apartment buildings that are off-market properties could lead to some interesting opportunities. 

Also, a few trips to local real estate investment clubs might be a way to develop a network of folks who can keep an eye out for small apartment buildings.

Checking the classified section or real estate section for local newspapers, as well as Craigslist and Facebook Marketplace are ways to find some free leads for apartment buildings.

Many banks provide information about REO properties online that investors can review.

An investor can ask friends, family members and professional associates to forward any details about cheap apartment buildings that are for sale.

Additionally, a conversation with accountants, tax preparers, attorneys, financial planners, auctioneers and other individuals who provide professional guidance may be a great source for apartment leads.    

Again, it may take some serious effort to locate commercial apartment buildings that are for sale. But, with some due diligence and consistent efforts, an investor may find success.

Getting a Mortgage Pre-Approval for an Apartment Building

Prior to shopping for an apartment building, it is a great idea to obtain a mortgage pre-approval for a commercial property.

Many real estate deals are lost because an earlier bird got the worm.

Entering the arena with a mortgage pre-approval in-hand from Direct Apartment Lenders will signal to everyone who is involved with a deal that an investor has funding support from a nationwide apartment lender.

Apartment buyers who have a mortgage pre-approval may have better opportunities for negotiating the sales price, closing time frame, closing cost assistance, repair escrows and other items.

Speaking with one of our loan officers about a mortgage pre-approval for an apartment loan is a very convenient and an informative process.   

Contact a Non-Bank Apartment Lender For Apartment Building Loans

Investors will frequently contact a bank to inquire about real estate secured loans. 

Visiting a bank’s website to apply online for an apartment building loan would appear to make sense. Banks have money from depositors to lend for auto loans, personal loans, home equity loans and to issue credit cards. 

Therefore, would contacting a bank about a commercial apartment building loan be a wise decision?

Perhaps!

However, banks will largely take the path of least resistance to earn money from their depositor’s assets. In certain lending environments, the bank might lean toward more car loans or toward issuing more credit cards.

Contacting a non-bank about an apartment loan is a great idea for an investor who needs fast commercial funding!

We never focus or lend money toward investments that are not real estate related.

For years, we have helped investors secure attractive financing throughout the US.

Contact Direct Apartment Lenders today about financing for a commercial property.