Lending on apartment buildings

[Bryce Bowers]

What are the numbers banks run through to determine if a deal is good to lend on? I’m looking to buy apartment buildings.

[Account Closed]

For >5 units apartment, lenders look at the NOI/debt service, this ratio needs to be greater than 1.25. Then look at the rent roll to determine the occupancy which needs to be at least 85%. After these two, then look at the borrower's credit and past experience.