Welcome to our Learning Center. Below you will find helpful articles to help you understand the many intricacies related to investing in commercial real estate and commercial mortgage financing. There are a lot of articles that discuss investing in, and financing, multifamily properties, as apartment and multifamily buildings are a popular start for investors looking to invest in commercial real estate.
We continually add helpful information to this page, so check back often to stay up to date on market trends.
Investors with large multifamily portfolios are aware of Fannie Mae and Freddie Mac Multifamily Loans. These two organizations handle a large volume of multifamily loans made in the U.S. [...]
the Federal Reserve’s Federal Open Markets Committee (FOMC) raised their rates by 75 basis points, the largest rate increase since 1994, in an effort to slow down the rate of inflation. [...]
The Fed follows its usual path to combat rising inflation. On May 4, the Federal Reserve increased its Federal Funds rate by 50 basis points. This is the second of approximately seven rate hikes expected this year. [...]
I constantly receive phone calls and emails from borrowers who ask me what to expect when approaching a commercial real estate lender for a commercial real estate loan. Here are some thoughts to consider: [...]
Are you considering a commercial real estate investment? The first thing to decide is whether you are looking for a safer investment (and lower return) or a riskier investment (potentially higher return). If you are a first time or novice investor with limited experience, you should consider the former – a safer, less risky investment. [...]
A commercial mortgage calculator is a very handy tool when shopping for a commercial mortgage loan. Whether you are purchasing a new investment property or refinancing an existing commercial mortgage, it is helpful to know how much of a loan you can afford at today’s rates. [...]
Are you looking to secure the best multifamily loan rate for a multifamily rental investment? Underwriters will take a look at factors such as subject property value, loan-to-value ratio, debt-service-coverage ratio, borrower’s net worth, liquidity, and credit rating. [...]
The Federal Housing Finance Agency (FHFA) is a governmental agency that dictates policy for Fannie Mae and Freddie Mac. Fannie and Freddie are two of the largest sources of apartment loans and multifamily mortgages nationwide, as they purchase apartment loans from banks and other lenders. FHFA policy changes determine how aggressive lenders will be in the multifamily market. [...]
Investments in manufactured home communities performed very well during The Covid-19 pandemic and are expected to outperform as the economy recovers. New inventory is limited as renters continue to look for more economical living conditions. The large spike in unemployment during the pandemic brought on a strong demand for lower priced housing options. [...]
The pandemic changed the world in early 2020 as the virus affected every segment of the real estate market. Social distancing and stay at home mandates had severe effects on real estate. Retail properties, hotels and motels, and leisure properties in general were decimated, while essential retail, medical offices, and warehouse properties for e-commerce companies did exceedingly well. Close to a half million people have died from the coronavirus so far, although deaths and hospitalizations have begun to slow down. The health crisis has caused employers to lay off some workers and force others to work from home. [...]
Are you looking to refinance your apartment? In today’s market with historically low interest rates, many apartment owners are wondering how to qualify for the best rates. It’s important to understand that there may be things that have happened since you last financed your apartment building that could adversely affect your ability to refinance. Underwriters will take a look at factors such as subject property value, loan-to-value ratio, debt-service-coverage ratio, borrower’s net worth, liquidity, and credit rating. [...]