Apartment Loan Specialists
multifamily loans nationwide except NY & TX
Acquisition - Refinance - Loan Modification - Cash Out
Experienced, respected, efficient, reliable and direct to lenders.
Closing loans for clients with integrity since 2001. Strictly confidential.
866-999-0350
Your loan specialist is Don Johnson
email: property_apartmentloanspecialists.com
About ALS
The ALS Difference
We have been closing loans for clients since 2001.
Our experience and direct relationships with lenders sets us apart. We are direct to the decision makers.
Your situation is never referred to another broker.
We are closers. We work with you and negotiate with lenders to get you the best financing possible for your situation. We represent you, the client, not the lender.
We are available 24/7 to our clients to answer your questions and concerns. We walk you through the process step by step and work directly with everyone from the loan officers to appraisers, engineers, title and insurance companies to lawyers and closing agents.
We earn your business with hard work.
We have extensive direct relationships with lenders. We are direct to the Presidents, V.P.s and Underwriters. Your loan request is not passed around to people and businesses that cannot help. Your loan request and business information are held in the strictest confidence.
We know what lenders want to see and hear to grant a comittment. When lenders say no to others they say yes to us and our clients.
We arrange funding for multifamily unit apartment loans nationwide for residential structures that contain five or more dwelling
units in the same building. These can be multi-story buildings that generally offer individual apartments for rent with common area facilities. With us you can have commercial financing at the best apartment financing rates and terms.
We have several investment mortgage loan products to meet your lending needs. Our experience in apartment loan financing will
find you the best apartment loan for your needs.
With us you are assured of a fast and efficient process.
We offer a variety of flexible apartment financing options. Whether you are looking to refinance your apartment loan, modify your present loan or purchase apartments with a new loan, we will work with you to find the best-fit apartment finance program for your needs.
Some of our apartment loan program
underwriting guidelines on apartment
loans are as follows:
Apartment mortgage loans are available on fixed and variable rate
financing on 5 or more units
Apartment financing LTV permitted up to 83%
Apartment loan rate fixed terms: 3-35 years
Apartment debt coverage ratio: 1.05 to 1.25
Cash-out available on apartment loans
Don't waste your time with brokers shopping your situation or lenders who never give you an answer. We'll get your loan closed.
Our fee is 1% of the loan amount payable at closing. We work by exclusive
agreement only.
We want to earn your business.
$24 million
loan modification
- CLOSED -
$10 million
acquisition
$6 million
- ClOSED -
FHA - HUD
Conventional
Hard Money
Conventional Loans
A conventional loan is any mortgage which is not guaranteed or insured by the federal
government (Veterans Administration (VA) or the Federal Housing Administration(FHA)).
Conventional loans may be "conforming" and "non-conforming". Conforming loans follow the
terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don't meet
Fannie Mae or Freddie Mac qualifications, but are also considered conventional.
We are direct agents for several large commercial nationwide banks as well as have relationships with local banks in many cities.
Hard Money Loans
A hard money loan is a specific type of financing in which a borrower receives funds based on the value of a specific parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and
are almost never issued by a commercial bank or other deposit institution.
Hard money is similar to a bridge loan which usually has similar criteria for lending as well
as cost to the borrowers. The primary difference is that a bridge loan often refers to a
commercial property or investment property that may be in transition and not yet qualifying for traditional financing. Whereas hard money often refers to not only an asset-based loan
with a high interest rate, but can signify a distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring.
Loan Structure
A hard money loan is a species of real estate loan collateralized against the quick-sale
value of the property for which the loan is made. Most lenders fund in the first lien
position, meaning that in the event of a default, they are the first creditor to receive
remuneration. Occasionally, a lender will subordinate to another first lien position loan;
this loan is known as a mezzanine loan or second lien.
Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the loan-to-value or LTV ratio and typically hovers between 60-70% of the market value of the property. For the purpose of determining an LTV, the word "value" is defined as "today's purchase price." This is the amount a lender could reasonably expect to realize from the sale of the property in the event that the loan defaults and the property must be
sold in a one- to four-month timeframe. This value differs from a market value appraisal, which assumes an arms-length transaction in which neither buyer nor seller is acting under duress.
Hard Money Rate
Hard Money Mortgage loans are generally more expensive than traditional sub-prime
mortgages. However all mortgage loans are not necessarily considered to be a high cost
mortgage. Generally a hard money loan carries additional risk that a borrower is aware of.
Rather than selling the property a borrower will opt to keep the loan and if a lender is
willing to assume some of the risk by offering a hard money loan.
Interest Rate on Hard Money
The rate is not dependent on the Bank Rate. It is instead more dependent on the real
estate market and availability of hard money credit. Currently and for the past decade hard
money has ranged from the mid 10% to 16% range. When a borrower defaults they may
be charged a higher "Default Rate". That rate can be as high as allowed by law which may go up to or around 25%-29%.
Hard Money Points
Points on a hard money loan are traditionally 1-3 more than a traditional loan, which would
amount to 3-6 points on the average hard money loan. It is very common for a commercial hard money loan to be upwards of four points and as high as 10 points. The reason a borrower would pay that rate is to avoid imminent foreclosure or a "quick sale" of the property. That could amount to as much as a 30% or more discount as is common on short
sales. By taking a short term bridge or hard money loan, the borrower often saves equity and extends his time to get his affairs in order to better manage the property. All hard money borrowers are advised to use a professional real estate attorney to assure the property is not given away by way of a late payment or other default without benefit of traditional procedures which would require a court judgment.
FHA HUD 223 (f)
FHA loans are backed by the U.S. government. They offer higher LTVs and better terms & rates on 5+ unit multifamily apartments for properties that would not otherwise qualify. This is a federal mortgage insured program. It doesn't mean that the government is funding the loan...they are insuring it against default. Section 223f is a section under the Federal National Housing Act. It allows the FHA (Federal Housing Administration) to provide mortgage insurance to HUD approved lenders. This is to assist in the purchase or refinance of apartment or other types of multifamily rental properties. The loan program allows for long-term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.
This program is available for both non-profit and for-profit borrowers. Under Section 223f,
borrowers can receive an insured mortgage up to 85% of appraised value or sale price
(whichever is less). Or on a refinance, borrower can receive 80% with cashout (the 83% LTV applies to standard refinance).
The property must have been completed or rehabbed at least 3 years prior to applying for this loan. Other than normal occupancy requirements, there are no income limits. The properties can be market rate or LIHTC (low income housing tax credits) properties. The properties can also be specifically used for handicapped or elderly tenants.
The property can either be walk-up, row, elevator, detached, or semi-detached style. Theproperty must have at least 5 or more units to be considered.
FHA Section 221
Is a federal mortgage insured program. It doesn't mean that the government is funding the loan...they are insuring it against default. Section 221(d) is a section under the Federal National Housing Act. It allows the FHA (Federal Housing Administration) to provide mortgages insurance to HUD approved lenders. This is to assist in the development or substantial rehabilitation of apartment or other types of multifamily rental properties. The loan program allows for long-term mortgages (up to 40 years) that can be financed with
Government National Mortgage Association (GNMA) Mortgage Backed Securities.
This is the best loan program in the marketplace today. Multifamily Developers are often amazed at the benefits this program offers them.
The program is available for both non-profit and for-profit borrowers. Under Section 221(d)(3), non-profit borrowers can receive an insured mortgage up to 100% of the estimated replacement cost of the project. Under section 221(d)(4), for-profit borrowers can receive a
maximum mortgage of 90% the replacement cost estimate.
Most people mistakenly believe that this program is only for low income tenants...there is NO income limits. The properties can be market rate, LIHTC (low income housing tax credits), and bond properties. The properties can also be specifically used for senior or handicap tenants. The property has to have at least 5 units and it can either be detached, semi-detached, row, walkup, or elevator style. Non-apartment property types are also eligible for this program such as mobile home parks and assisted living facilities. The properties can also have limited commercial/retail space.
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Our Clients
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Contact Us
34 Glenwood St
Albany NY 12208
Tel: *1 866 999 0350
Fax: *1 518 935 9696
Cell: *1 518 253 6109
Email: property_apartmentloanspecialists.com
Multifamily financing
