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Apartment Mortgage | What is an Apartment Mortgage?

Savvy investors are always looking for something that will bring an excellent ROI. It used to be that the best strategy was to spend money on property investments, but because of the housing crisis, most buyers are shying away. Luckily, the issues with the housing crisis have made way for the rise in a better type of investment – multi-family homes and apartments.

Purchasing a multifamily home (a home with at least 5 residencies) is quickly becoming one of the smartest property investments to make, because rentals are at an all-time high, and quality, well-run rentals do not have the ups and downs that the housing market does.

Of course, many of these properties can cost anywhere from $500,000 to well over 5 million, and few savvy investors have the means to cover that type of investment in full. That’s why many investors take out an apartment mortgage.

Introduction to Apartment Mortgages

Apartment mortgages are similar to traditional home loans. The only difference is the dollar value and the information required to receive it. Unlike home loans, it’s not enough to report your own income. In order to qualify for an apartment mortgage, you need to show:

  • You have a significant amount of capital invested in the property.
  • You have renters already on site and a working business model.
  • You have chosen a property that is proven to be a sound investment.

Your personal finances and credit score still play a role, but apartment mortgage lenders need to take more information into account, because there are far more factors that affect the success of a rental property. Still, apartment mortgages work on the same basic principles – you receive a loan on your property, and you are expected to pay back that loan during a set amount of years at a set (or variable) interest rate.

Applying and Qualifying for an Apartment Mortgage

Apartment mortgages are one of the best ways to purchase a future rental property, and there are numerous loans available that are designed to make them easier to qualify for than they have been in the past. Apartment mortgages do take work, and partnering with a company like CRE Lender is a great way to make sure that you’re able to receive the commercial real estate property that will be your next great investment.

It starts with finding a property, and of course before you can begin you need to make sure you’re ready for this type of investment. But once you are, you need to make sure that you have an apartment mortgage at the best possible rate and the best possible terms to make sure you maximize your ROI. To find out more, sign up with CRE Lender today.

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