If you want the best deals on multifamily investments, it helps if your real estate originator recognizes you as a qualified lead—a savvy buyer, knowledgeable about the multifamily industry and having the necessary resources to make the investment.
The following are three ways you can become a qualified lead and attain the best terms for your deal:
Research the local markets
Learn about the area where you’re looking to buy, especially if it isn’t local to you—and keep an open mind. Sometimes the best opportunities may be counterintuitive; for example, you may find better investments in higher cost rather than lower cost regions. Be sure to investigate all your options.
Understand the lender’s requirements
Different types of loans have different requirements. For example, Fannie Mae and Freddie Mac loans do not require personal tax returns or paystubs. However, borrowers may need to have a minimum net worth, liquidity, credit score, and experience owning and operating multifamily assets to be considered.
Know what type of property you’re looking for
Multifamily real estate is available in a full variety of sizes, styles, and price ranges. Before you contact an originator, know which types of property fit your investment objectives, budget, and qualify for the originator’s loan program. For instance, most lenders only offer loans for stabilized assets—completed properties with occupancy rates of 80% or higher.
By doing your homework at the beginning, your originator can help you secure the best deal when you make the decision to purchase.