Investing In An Apartment Building Guide – Winston Rowe & Associates

Dec. 23, 2011 - PRLog -- Successful Apartment Building Investment Strategies

Winston Rowe & Associates is a nationwide, no upfront fee private capital consulting firm has published this article to address the business issues that apartment building investors face. Hopefully, you will find this article informative and turn to Winston Rowe & Associates for your apartment building financing needs.

You can contact them at 248-246-2243 or visit their web site at http://www.winstonrowe.com  

Overview:

Investing in Apartment Buildings can be a great way to improve your financial portfolio and produce passive income or monthly cash flow. However, as with all commercial real estate investing there is a certain level of risk.

For example, keeping the apartments rented and in good condition can be difficult depending upon your location and renters. If you have a great location and great renters your apartment building investment can bring in consistent revenue. If you are willing to shoulder the risks, the rewards of apartment building investing can be substantial.

Investment Strategies:

Assuming you have located an Apartment Building you want to purchase. You’re going to need to do some research.

Find out what the occupancy rate is, rent and size of each apartment, gross income of the building for the last three years, taxes and expenses and loan payments for the previous year.

Compare your numbers. Discover potential improvements in the apartment building. Invest in a building that is a balance of a good deal and a sound investment.

First, figure out how much the apartment building is worth. Use an appraiser; however there are other factors to consider before paying for an appraisers opinion. Is the apartment building selling for less than replacement cost? Do the apartments need upgrades or major repair? Is the apartment building near a major employer? What is the overall occupancy rate in the area for apartment buildings?

After taking all of these things into consideration, based on your research decide on what you are willing to pay for the apartment building. Always consider an offer that is lower than your final price. Keep in mind that the asking price is just that – asking price. Always ask, why is it for sale.  

Free commercial real estate investor research resources:

http://www.winstonrowe.com/Free_Real_Estate_Resources.html

Financing Options:

You’ve located the apartment building you want to invest in. The next step is obtaining financing, easier said than done, commercial loans are complex and require a lot of due diligence from lenders and or banks. There are many types of financing options for the apartment building, depending on the condition, location, age and occupancy rate.

Free apartment building financing resources:

http://www.winstonrowe.com/Apartment_Building_Loans.html

The first thing to consider when obtaining financing is what type of loan do you need. Then what is the down payment and how much money will you need to qualify.

Bridge Loans:

These loans are for commercial properties that are generally high risk investments that cannot qualify for conventional financing until the apartment building has been stabilized or improved. Down payments generally, start at 50% with interest rates starting at 12% interest only. Bridge loans are generally 12 to 18 months. At the end of the bridge loan term, the apartment building should be ready for conventional bank financing.

Conventional Bank Financing:

Apartment buildings that qualify for this type of financing have down payments of 20% with occupancy rates of at least 85% and have had a consistent rental history for at least the last two years. Additionally, there are no major improvements that need to be made to the apartment building.

Winston Rowe & Associates has the experience and have a deep understanding of the apartment and multifamily vertical market that has helped Winston Rowe & Associates become one of the nation’s fastest growing sources for apartment portfolio loans and refinances.

Winston Rowe & Associates
31408 Harper Ave
Suite 147
Saint Clair Shores MI 48082
248-246-2243

Winston Rowe & Associates has no upfront fee loan programs in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,  Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee,   Texas, Utah, Vermont, Virginia,   Washington, Washington DC, West Virginia, Wisconsin, Wyoming

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Winston Rowe & Associates is a nationwide commercial real estate apartment financing firm specializing in large commercial mortgage loans over $2 Million.

Winston Rowe & Associates has no upfront fee loan programs in the following states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming