As an income producing property, the rents typically should support the debt service and therefore, is one of the easiest properties to obtain financing. Many times, the borrower may have bruised credit or a weak financial statement, but the property itself can carry the loan. As a borrower you will want to see the financial statements and the rent rolls on the property before signing a purchase agreement.
In circumstances where you have large multi-family properties that need extensive rehabilitation, have excessive vacancy, or poor financial management, the loan may become more difficult to place. However, this is where Elite Commercial Lending's "softest hard money you can buy loan" comes into place.
Sometimes, the traditional bank may not be able to finance a property with a small number of units because if even a few are vacant, the vacancy rate may ruin the debt coverage ratio. Elite Commercial Lending has many different creative ways to meet the debt coverage ratio, such as interest only loans or amortization terms that go out 25 or 30 years.
