List Categories | List All Articles | List Articles By Title
Apartment Loan 101
So you're interested in going into business as a property manager? Have you given any thought yet to you'll enter this potentially profitable market? Reality check-unless you've just inherited a large sum of money from a relative or are otherwise independently wealthy you're going to find someone to borrow from. This is where an apartment loan comes in.
Before you visit the local bank or other lending institution, it may be wise to ask yourself how long you plan to own the apartment building or complex. Are you investing for the long-term? Answering this question will significantly influence the type apartment loan you should get.
If you are planning to own the property for two years or less, most experts agree that an apartment loan with an adjustable rate mortgage (ARM) will be your best bet. Like the name suggests, an ARM is a loan will an interest rate that may change with time in accordance with various factors. ARM apartment loans usually offer a better initial interest rate than other loans to offset the risk of future interest rate changes. An interest rate ceiling that may be reset annually also protects the mortgage holder.
If you plan to stay in the property management business for the long-term, you may want to look at getting a fixed rate apartment loan. A fixed rate loan guarantees the same interest rate over the life of the mortgage.
Supposing interest rates are historically low at the time you secure the apartment loan, this type of loan will lock you in at the best rate possible. On the other hand however, if interest rates are historically high at the time of the loan, you might be stuck paying interest at a higher rate than you would have with another type of apartment loan.
Another important question to answer before seeking an apartment loan source is the approximate cost of the property. This may seem like a no-brainer when looking for an apartment loan, but too many first-time investors just take the interest rates they're given without question. If the apartment building you're interested in is selling for over $500,000, a direct lending source or investment company can usually give you a better interest rate than most banks or credit unions. However, if you're looking at a smaller apartment building selling for less than $500,000, you may want to check interest rates at the local bank.
With banks and other lending institutions anxious to provide you with an apartment loan, new loan options have emerged in recent years. Generally speaking, smaller banks and other lending sources like direct lenders have a greater degree of flexibility in what they can offer borrowers. In order to attract larger numbers of borrowers, many lenders now offer non-recourse.
A traditional recourse loan means that the lender has claim on personal or corporate assets in the event of a default by the borrower. On the other hand, a non-recourse apartment loan means the lender cannot hold you personally liable if you fail to repay the debt as promised. The only recourse for compensation to the lender is to take the property you've pledged as security for your loan, but he cannot claim any other assets or money from you if you default.
Whichever apartment loan option you decide on, it's important to be certain you understand the details. It's vitally important that you choose a lender that has both the experience and inclination to take the time to sit down with you and answer your questions clearly. Getting your apartment loan from a source you can trust will go a long way in helping you find success and enjoyment in the exciting world of property investing and management.
How to increase the Saleable Value of your Home
When selling your home, you'll want to fetch the best price possible for your home yet it so happens in many cases, that buyers give offers that just don't meet your expectations. Of course, you will have to negotiate but you still may not end up getting how much you want.
Howard Stern is Hot in Real Estate
Howard Stern has over 20 property related files in Queens, 27 in Brooklyn and 1 in Manhattan. The files include mortgages, releases or satisfaction pieces, liens and powers of attorney.
Getting Started in Real Estate Foreclosure Investing
Decide to Invest in Real Estate Foreclosure InvestingWith the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell. The strategy a buyer pursues will determine which foreclosure property to buy and the location.
Grab Quick Profits As Real Estate Prices Soar
Real estate values rise and fall in cycles. Currently home prices are nearing a top in many areas.
Selling Your Home - What Can Go Wrong With Title and Lenders
If you're selling your home, there are going to be difficulties at some point in the transaction. Some problems can't be fixed.
Should You Buy a House or a Condo?
A big debate these days is whether or not to buy a house, or buy a condo. Most of this debate comes from a lack of understanding about condos, and what they are.
Sell Your Home Without Paying Any Commissions
All of us know that real estate commissions can work out to quite a bit of money - anything from a few thousand dollars with discount brokers to 6% in commissions with full-service agents. That's a substantial sum of money to be paying for something you could very well do on your own.
Home Equity or Debt Trap?
Are you using the equity from your home to purchase everyday things? This is a dangerous trend growing more popular every month as millions of Americans tap into the value of their home to fund a lifestyle.How many times have you heard the saying "Your home is the best investment you'll ever make"? How many times have you also heard that your home will be the most valuable asset you will ever own?Both of these are as true, if not truer, today than at any time in the past.
Looking into Buying Mobile Homes?
To own a home is one of the dreams every common man cherishes, even from the childhood. With hard work and years of savings, he might be able to build or buy a dwelling for him and his family.
Part 1: FAQ's From Media Interviews With Real Estate Author
Do you feel there is going to be a real estate bubble?Nash: No. Are some coastal and resort markets over-heated, yes.
Russ Whitney and Real Estate Investing Gurus
There is curently a huge real Estate boom in America today. Little does the world know that this boom has some to do with all of the real estate guru's out there.
Investment Property Part 2 of 2: What You Need to Know Before You Buy
Welcome to the second portion of a two-part series on investment property. In the first installment, "How Not to Become a Slumlord", we discussed a little of what it takes to own and operate a property as well as some of the do's and don'ts of the property management trade.
Secrets of Making Money from Real Estate - Part 1
There are three investment vehicles which can make you rich. Stocks, businesses, and real estate.
Landscaping Adds Great Value to Real Estate And Helps You Sell
Over the years several of our clients have had professional landscaping done and it's amazing to me how little landscaping, can be done for $5-10,000, by a professional Landscaper, and how little value it can add to your home.Small shrubs, trees, and plantings add almost nothing, or actually nothing at all, to your home value on the open market -- until they are several years older! There is another way!Some savvy investors look for good homes that are poorly landscaped and after spending a couple of thousand dollars or less put the property right back on the market for much more money and sell it.
Checklist for Buying a Home
I had a client who called saying that his bath tub just fallen through the floor in his new home (new to him). Mold had eaten away the floor from the crawlspace up.
Closing Costs When Buying A Home
Closing costs are often the last thing a person thinks of when buying a home. While closing is the joyous moment the home becomes yours, the costs can be surprisingly aggravating.
How to Achieve Financial Freedom with Your Home
The secret disclosed on how you too could achieve financial freedom through property (and tell the pension companies just where to stick their measly, worthless 'pensions') Geoff Morris is a self-made property millionaire who made it in less than 18 months even with a hectic 'day job'. He has written a series of articles to help people like you achieve the same levels of success - as long as you are willing to 'Go For It!'Many people these days are getting more and more concerned as they approach retirement age.
How To Negotiate A Higher Price For Your House
Negotiation is where many FSBO home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands.
Boom or Bust
For those looking to invest in the real estate market?keep your eyes on the headlines. According to the Federal Deposit Insurance Corp.
How Does Interest Rates Affect New Home Sales and Wheres The Best Place To Build?
These real questions on new home starts and interest rates on real estate are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy."Question 1.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !