Apartment Loan in Birmingham:
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 an apartment loan in Birmingham. Caffrey & Company LLC has a special focus in Birmingham apartment loans. The most attractive, non-recourse loans 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 $7 million leverage up to 85% is available) you are at the right place. These specialized apartment loan products are available in Birmingham as well as suburbs including Vestavia Hills, Mountain Brook, Homewood and Chelsea.
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 an apartment building loans in Birmingham. Therefore, this will help to achieve the best pricing and loan terms for your multifamily building or commercial real estate investment.
Free Loan Quote for Commercial Real Estate Loans in Birmingham:
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).
Next, we will need to understand your investment objectives. 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 apartment loan in Birmingham loan request.
We understand the financing of an apartment complex is a very important component of your 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. We can review and provide some up-front loan for a multifamily loan.
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 $7 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 a Multifamily loan in Birmingham. Closing costs vary between loan products. Before you reach for your checkbook 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.
Birmingham Multifamily Market Data:
Responsive state and local initiatives contributed to Birmingham’s resilient economic turnaround at the start of 2021, especially in the metro’s job sector. Metro employers prioritized hiring and retaining top talent within the region, an accessible feat when many residents adopted remote work environments. By February 2021, 78% of the workforce lost during the first wave of the pandemic has been recovered by local firms and institutions, equating to 44,800 jobs secured since April 2020. Although some sectors continue to struggle, particularly those in the services industry, the balance of Birmingham’s broad based economy embraced growth and competition in the new normal. Amid expanding payrolls, apartment operators raised rents 2.6% annually, reaching $1,029 per month in the first quarter of 2021. Central Birmingham recorded the highest average effective rent among the metro’s six submarkets. However, the submarket’s average occupancy rate came in at 94.5%, just 40 basis points below the metro average of 94.9%. With seven properties currently under construction and scheduled to deliver during 2021, metro occupancies are expected to encounter increased supply-side pressure in the near-term.
Birmingham by the Numbers:
New unit deliveries for first quarter of 2021 – 180 units. Net Absorption negative 344 units. Unemployment at the fist quarter of 2020 2.5% as of the first quarter of 2021 3.8%. The Birmingham Metro saw a small 0.3% positive net migration of population over the previous year.
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.
Keep Caffrey & Company in mind when searching for an Alabama lender for apartment loans. 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.