Loan amounts for multifamily properties in the $250,000 to $2 million range are typically too small for most major banks. Instead, such banks like to finance apartment buildings either short or long term in the $10 to $20 million dollar range and even higher. That leaves investors who are either starting out, or, just want to take on a smaller multifamily project, out in the cold. But not at Civic Financial Services. The price range from $250,000 to $2 million is really our specialty. No one can compete as it relates to pricing, speed and loan options.
We’re a private lender and that means we can approve loans for real estate investors using our own terms, not approving a loan using another lender’s guidelines. We build relationships and look at each opportunity as another way to help real estate investors reach their financial goals.
Traditionally, when someone wants to finance an apartment building for example, the bank asks to provide no shortage of paperwork. Two to three years of income tax returns are required, both business and personal. 12 months of bank statements are needed to analyze current cash flow. Minimum credit scores are needed and are essentially rigid with little leeway. Personal financials are required and years of landlord experience are a must. Once the loan officer at the bank collects the information, it’s typically sent to another location for underwriting.
The approval process is just getting started and it’s already been several weeks. It’s not uncommon for a bank to finance a multifamily property over several weeks and during that time it’s possible the sellers decide it’s taking too long and the contract date expires and the investor loses the opportunity. A bank can even say “no” to a multifamily property just because of the sales price with no regard to the profitability of the project. That doesn’t make sense to us.
We’re known in the industry as specialists in multifamily properties that fall into the $250,000 to $2 million range (even up to $5 million). CIVIC currently offers multifamily lending for up to 20 units and will be expanding this soon, with 19,000 opportunity properties already identified in the markets being served. We have longstanding relationships with our clients and we consider ourselves unrivaled in the apartment building financing industry. Our clients know this and that’s one of the primary reasons for our long term success.
We’ve found our niche and are constantly working to establish lasting relationships with the real estate investment community by making common sense decisions based upon the entire project and not just one or two years of income tax returns. For multifamily financing, CIVIC has the options you’re looking for, and with the recent on-boarding of Brian Murphy, CIVIC’s Managing Director of Multifamily Lending, the division will be scaling to new heights.Questions? Contact Clayton Danly Today!