Apartment Loan in Los Angeles:
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 Los Angeles. Caffrey & Company LLC has a special focus in Los Angeles 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 all of the suburbs including Long Beach, Anaheim, Hollywood and Ontario.
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 an apartment building loans in Los Angeles. Therefore, this will help to achieve the best pricing and loan terms for your commercial real estate investment.
Free Loan Quote:
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 Los Angeles 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 options.
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 an apartment building loan in Los Angeles. 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.
Multifamily market date for Los Angles:
Metro takes initial steps toward recovery. Los Angeles entered 2021 with the second-highest unemployment rate nationally, having recovered less than half of the 660,000 jobs lost last April. The metro’s economy, however, is beginning to benefit from the partial rollback of COVID-19 restrictions that has allowed certain companies to rehire. The ongoing vaccine rollout should further reduce restrictions at restaurants and businesses and allow the reopening of entertainment venues and schools. Widespread vaccination could also boost tourism this summer, aiding the hard-hit leisure and hospitality sector. Significant job creation within this segment could pave the way for a recovery that closes the gap with better performing markets. Once the labor market improves, conditions could again favor apartment owners as more than half of metro households rent.
Submarkets brace for potential disruptions. Supply additions and the flexibility among higher-earning renters to relocate via remote working arrangements have lifted Class A vacancy to a high mark. With completions intensifying in 2021, operators will rely on concessions to prevent a larger increase from occurring. The Greater Downtown Los Angeles and Westside Cities submarkets will be most impacted by new supply. Outlying cities and closer-in areas south and east of downtown will be notably less exposed. These Class C-heavy areas, however, may record upticks in vacancy once eviction moratoriums and rent deferment legislation expire.
Follow new rent control laws closely:
Going forward the new rent control regulations in Los Angeles and California may plan into a long-term negative impact for the multifamily sector. However, at the moment, current market conditions are not influenced by the bill due to lack of perceivable rent growth approaching 5.0 percent plus market inflation. The investor should be mindful of the impact of this new rent control as well as other rent regulation initiatives in the works.
Los Angeles Multifamily Outlook for 2021:
The metro recaptures more than one-fourth of the 417,500 positions lost last year, translating to employment growth of 2.6 percent. This annual rate of job creation will slightly trail the national increase. After finalizing more than 10,600 units last year, developers will grow Los Angeles County’s apartment inventory by nearly 1.3 percent in 2021. Mid-Wilshire and Hollywood will register the largest increases in rental supply this year. Vacancy climbs to 5.0 percent this year as a record volume of apartment deliveries outpace demand. Still, renters will absorb roughly 7,700 units in 2020, extending a streak of positive absorption that began in 2010. Rising unit availability in higherpriced submarkets and elevated supply additions will limit landlords’ ability to push rental rates, dropping the average effective rent to $2,175 per month. Last year, the metro’s average rent decreased by 4.8 percent.
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: Apartment Loan Interest Rates.
Keep Caffrey & Company in mind when searching for a California 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.