commercial lender apartment building

[Sean Fisher]

I am interested in buying a 18 unit apartment building and  I am looking for a good commercial lender in the New Jersey Area.  I would also like to hear other investors input on the type of loan I should look into.   I am looking to hold this property for the long haul. Any input would help. 

[Tim Milazzo]

Hi Sean,

 For an 18-unit, the three common sources of capital that you'd want to look at will be local/regional banks, the Freddie Mac small-balance program (if loan size > $1M) and the Fannie Mae small-balance program (if loan size >$1M).

 Assuming you're under $1M and going the bank route, it's always best to get quotes from several different banks, and then compare them based on rate, term, amortization, and flexibility. Depending on where you are buying in NJ and the value of the property, you may be able to get bank based in New York interested in the deal, which will widen your pool of potential lenders.

 Care to share more about the property? What's the listing price? Is it stabilized?

 - Tim