Small Apartments Serve Large Portion of Renters
Smaller multifamily buildings are vital to affordable housing. These units tend to have more bedrooms, fewer amenities and are more affordable – perfect for families of America’s workforce. Financing the abundant supply of existing Class B and Class C buildings that typically make up small multifamily housing is crucial.
Yet borrowers looking to finance small apartment buildings have faced many issues that have been less common in larger conventional multifamily lending. In the past, these borrowers have struggled to find lenders willing to finance a smaller building if the asset didn’t fall inside a major city. Once a lender was finally secured, the process and paperwork involved were usually not streamlined, which led to inefficiencies and delays. And finally, lending programs in this segment were inconsistent across lenders and regions.
View entire article here in National Real Estate Investor
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