Going back to the basics for multifamily investors and property managers not only can save you money but increase your bottom line.
Owning an apartment complex or managing one can be expensive if your game plan is simply offering concessions and other promotions to attract new tenants.
Obtaining new business is of course great but the cost to attract new tenants is an expense multi family owners would rather not pay. And the additional expenses of cleaning, repairs and marketing all add up to losing money. Exiting tenants can sometimes harm your bottom line as well. Word of mouth can be powerful, good or bad. It can be a small world even in a mid size city like Chattanooga.
What if you could retain all of your current tenants and fill your apartment complex with little cost?
Top Four Multifamily Retention Basics:
The list seems pretty fundamental but it is surprising to know that prioritizing tenant renewals is often over looked.
Managing or owning multifamily investments is easier when you are working with a team who understands what it takes. Call AAM Capital today for more tips.
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Multifamily Investment Experts
Office 423-870-2285 |
Rick Fitzgerald
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Choose AAM Capital Find out why investors choose us. Multi family investment options include Fannie Mae, Insurance, CMBS AND Portfolio Lending. commercial@aamonline.com |
Wells Fargo made the news in the WSJ recently. Many folks outside the banking industry don’t know how a Level 3 Asset would affect their bank.
Level 3 assets are generally loans than are classified as illiquid, hard to value or sell. Not at all a desirable asset.
Sort of like having a lot of garage sale stuff you know still has some value but can’t tell how much until someone offers you a price. You lose money on the original cost but make something. That’s a Level 3 Asset or funny money as it's called on Wall Street.
It is becoming clear that many of the largest banks are playing with funny money moving loans into this Level 3 asset class. Many mortgages are now just garage sale stuff. The drop in financial stocks was largely related to this issue.
More news in our commercial market. It is definitely hurt by the loss of NNN financing and other property financing options unless you have a client flush with cash. Cash is still a good thing in America.
The one bright spot is still the Multifamily investing and property leveraging is still at 80% LTV in the mid 6% range for larger loans. Fannie Mae and Freddie Mac are taking a beating but making money in this portfolio.
They have committed to expanding their multifamily loan programs. A couple of insurance companies have re-entered the market along with a few Hedge funds. Standards are higher but well worth the trouble while Hedge funds are looking for low leveraged deals.
More good news is we can still finance many properties at 75% but these programs are backed by investors who demand a higher return. It’s helpful to manage investors and owners expectations to avoid rate shock.
I am the first to tell a client that their own local bank is their best bet in this market unless the purchase requires a 30 year amortization or you want to buy multifamily.
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Multifamily Investment Experts
Office 423-870-2285 |
Rick Fitzgerald
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Choose AAM Capital Find out why investors choose us. Multi family investment options include Fannie Mae, Insurance, CMBS AND Portfolio Lending. commercial@aamonline.com |
Multifamily investing and AAM Capital go hand in hand. When you need a professional choose "The Multifamily Experts". Whether you want to purchase or you are refinancing, we are the investor's choice
AAM Capital has been recognized as one of Tennesee's top multifamily investment lender as well as other commercial real estate property types/
Our expertise with multifamily investments is a success because of our experience with over 25 years in banking and secondary market financing.
Agents and clients who work with multi family properties need mortgage professionals now more than ever before. The industry is changing daily..........no, now hourly and team work is an answer. Call me if you are an agent or multifamily investor when you want the absolute best team for your office and clients.
Investor choose "The Multifamily Experts" for its expertise and results.
Hispanics multifamily investors and agents relate well with the Executive Managers southwest living experience on the border of Texas in El Paso, Canutillo and Odessa TX.
Our first challenge is do we have a Multifamily loan? Our steps include:
I specialize in Multifamily investing and commercial properties. I work as a team alongside agents as well as investors to ensure good returns and success for everyone. AAM Capital understands investors, CAP rate returns, property evaluations and will provide the very best financing option available. My experience enables me to match investor needs with the loan criteria necessary for the loan closing. We can close many loans with just a little creativity or flexibility. Everyone needs all of the resources available to be successful in this day and age of the credit crunch.
Whether you are an agent, investor or owner user, depend on AAM Capital to work in your best interest.
John K / Multi family investor - "I love you man!"
John needed an immediate approval on a Friday as his contract was expiring over the weekend and his bank was still trying to determine which department actually lends in this area. AAM Capital issued a Conditional Loan Approval for the seller's agent on the same day. We called his sales agent while John was in the office as he needed some help in structuring the contract and sale. John got a great deal and appreciated our expertise.
Karen B / Residential agent -"Best commission I ever had".
I talked Karen into adding a line to her post cards when marketing to her previous clients: "Call me with ALL your real estate investments needs". One of her clients responded that they were seeking to purchase a $1.6M apartment complex and needed help. Although Karen didn't know anything about commercial real estate, she did know us and our ability to work with agent referrals. There were several considerations to be made but in a span of 2 hours and 30 days, she made a 3% commission split on the purchase. We took care of everything else but depositing her check.
Eunice K / Investor / Owner Agent - "Excellent job!"
Eunice had sunk a lot of her own money into rehabbing her purchase. The bank was not enthusiastic about cashing out her new equity due to unstable rents. However, we were able to show her strengths along with the great new look of the units. She got a good rate over a 30 year amortization and cashed flow better than her bank loan.
Robert S / Investor / "That was easy"
Robert owned a property that was located well over a 100 miles away from his home and office. the property was owned by his family and entrusted the management to him. Robert had to spend out of pocket cash to upgrade the property to keep his long term tenant. His bank who had the loan for years had an issue with the NOI reported on his return due to the large amount of repair expenses along with his living out of their market. Our global income approach was the answer and placed on a 30 year amortization.
Amin A / Investor / "Couldn't have done it without you."
When Amin and his brother were trying to purchase a multi family investment that included 43 parcels and various structures, he turned to AAM Capital. The property had been listed for well over a year but no one could piece together funding due to the odd makeup of the units such as duplexes, triplexes, quads, shotgun units as well as traditionally built structures. We were able to identify the value in the traditional block and mortar units and funded solely on this value leaving the remaining odd structures free and clear from lien. Sometimes a little creativity goes a long way.
Betty W / Investor / "We tried refinancing at the bank......"
Many of our refinancing opportunities start with the bank placing a loan into a 15 or 30 year term which makes our clients "Equity rich but cash poor" especially on larger loan amounts. Betty was very happy to learn we not only could lower her monthly payments but cash out some equity for her as well. Cash in your pocket beats equity to the bank all the time.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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