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Amarillo

Apartment Loans

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Amarillo Loans for Apartments:

Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties.  Call for great rates for multifamily loans in Amarillo, Texas.  Caffrey & Company LLC has a special focus in providing Amarillo Apartment Loans.  The most attractive, non-recourse loan terms start at $1,000,000 for multifamily properties.  Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $5 million leverage up to 83% to 85% is available) you are at the right place.

Amarillo Apartment Landlords can assist tenants impacted by the COVID-19 pandemic.

The Texas Rent Relief program helps renters with financial relief for the following:

  • Past due, current, and up to 15 months of expected rent costs
  • Past due, current, and up to 15 months of expected utility and home energy expenses

Renters can apply for assistance with these costs back to March 13th, 2020. Both landlords and tenants are eligible to apply for this program.

For Landlords:

A landlord can create an account to apply for unpaid or future rent on behalf of their tenants. The tenant can then sign the application and the payments will be issued directly to the landlord. Any payments issued to the landlord through the TDHCA program must be used to pay the tenant’s rental balance.

Multifamily Loan Underwriting:

Each loan product has unique underwriting requirements.  Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds.  We offer this expert loan underwriting for Amarillo Apartment Building loans to help achieve the best pricing and loan terms for commercial real estate investment.  We encourage our clients to submit key property level data for a free loan underwriting review.  This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider.  Here is a short list of property level data that would aid in providing a loan quote:

Required Underwriting information needed:

  • Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
  • Current Rent Roll
  • Brief narrative description of the property.
  • If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
  • What is the purpose of the loan? Acquisition, Refinance, cash out, re-position the property (renovations).
Apartment Owner Investment Goals:

Next we will need to know your objective, how much do you wish to borrower on the apartment complex?  Is this a long term investment or short term investment?  In other words outline your loan request.

We understand the financing of an apartment complex is a very important component of the investment.  Therefore, we encourage our client to send us details on the property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property.

Fixed Rate Loan Terms are Available for Multifamily Properties:

Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $5 million).  The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties.  There must be at least 5-units.  If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.

How long will it take to close the Loan?

The closing process normally takes between 45 and 55 days to close the loan.  Closing costs vary between loan products.  Before you put any funds out we will provide a detailed estimate of the anticipated closing costs.   At this stage you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.

Amarrillo economy:

The Amarillo metro area economy posted a second consecutive year of steady but moderate economic growth in 2019. The metro area is on pace to add more than 850 jobs (0.7% gain) in 2019, up from the 680 jobs (0.6% gain) added in 2018. The Amarillo region has now generated a total of 2,300 new jobs since the recent oil and gas-induced slowdown ended in mid-year 2017.  The metro area unemployment rate continues to hover near 2.5%, a full percentage point below both the state (3.5% Oct.) and nation (3.6% Oct.). This represents the lowest jobless rate in the region since the mid-1970s. Our estimates suggest that income growth in the metro area slowed in 2019, with personal income growth of 2.4% expected for all of 2019. Despite significant and steady gains since 2016, proprietor (self-employment) income remains more than 10% below the recent peak level of almost $2 billion reached in 2014, with the gap traced largely to oil and gas weakness.

Little rebound for the Panhandle oil patch predicted:

No meaningful recovery has taken place in Panhandle drilling activity since the slowdown in 2015 and 2016. As few as one rig was searching for oil and gas in the Panhandle throughout much of 2019. Forecasts for oil and gas prices suggest little rebound in the region’s energy sector through 2020.  Our 2020 hiring outlook calls for metro area job growth to maintain its current approximate trend and post a gain of 0.6% (800 jobs) in 2020. This suggests continued expansion at a moderate pace in Amarillo for a third consecutive year.

Good news for Personal Income:

Personal income growth is expected to accelerate slightly to 3.0% but trail the 4.0% average annual pace posted in the 2008 to 2018 period. Ongoing strength in state and U.S. conditions remains supportive of local growth. Exports of goods from Amarillo posted a moderate 2% gain to reach $539 million in 2018. Exports now comprise 17.8% of total metro GDP. By sector, food manufacturing now accounts for almost 75% of metro exports.  Consistent with USDA forecasts, our model-based estimates suggest a rise in total metro farm earnings to $165 million (15.2% gain) for all of 2019. Recent Census population estimates suggest a slowing to 0.4% growth in 2018 for the Amarillo metro area, just below the U.S. estimate of 0.6%.

Slower growth:

The slowing is traced to a rise in outmigration, primarily from the city of Amarillo.  The Amarillo metro area added 700 housing units in 2018 according to recent Census data. However, in 2019, builders sharply reduced the number of housing construction permits sought by roughly one-third. This is consistent with the recent slowing in population growth in the region. Housing prices are on pace for a 2.8% gain for all of 2019, and our outlook is for a slight acceleration to 3.1% in 2020.  The Amarillo retail sector is poised to post a second consecutive year of growth in 2019. In the most recent 4 quarters ended June 2019, gross sales in the metro area are up 2.2% while taxable sales are up 2.4%. Taxable sales are far stronger in Randall County (4.2% gain) than Potter County (1.2% gain). Our model-based 2020 outlook calls for a 2.1% gain in taxable sales for the metro area, a 2.1% gain in Potter and Randall Counties combined, and 2.0% growth in the city of Amarillo. Amarillo’s 11.2% increase in the median wage in 2018 far outpaced the 2.0% gain nationally and the 3.9% gain in Texas.

Median wages increased:

The median annual wage across workers of all education levels in the Amarillo metro area has now increased.  We see 29.4% across the decade versus 23.7% for the state and 17.6% for the nation. Median wages in Amarillo increased to 99% of the state and 97% of the national median wage. In inflation-adjusted terms, median wages in Amarillo are roughly 2% higher than the state and 4% above the nation. Overall educational attainment based on average years of schooling increased to 13.33 years in 2018, or 1.33 years of education beyond high school on average. The gap between Amarillo and the state and nation closed in 2018, with the metro area now only 0.09 years behind the state average of 13.42 years and 0.35 years behind the national average of 13.68 years. Amarillo’s current 26.3% share of workers with a bachelor’s degree or higher increased 2 percentage points in 2018, ranking Amarillo 9th among all Texas metro areas.  Amarillo metro area bank deposits posted a solid 3.1% gain, reaching $7.34 billion in mid-year 2019. Ongoing deposit growth is consistent with continued moderate growth in the broader Amarillo metro area economy in 2019.

Keep Caffrey & Company in mind when searching for a Texas lender for apartments. In conclusion you find details on several loan products by following these links: Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products.  Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site:   Multifamily Loan Interest Rates.

Have a question please call:  Mike Caffrey (913) 402-7077 or email: Mike@CaffreyLoans.com

On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.

Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077
Mike@CaffreyLoans.com
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