Why Borrowers of Small Loans are a BIG Deal
- Pearson RE Group
- Nov 2, 2017
- 1 min read
...multifamily financing evolving to meet the needs of the non-institutional investor...
Yes, this is a "sponsored" article from Freddie Mac, but relevant and informative none-the-less. In our ongoing endeavor to provide information to help you make informed decisions, we thought it fitting to share this perspective on small balance multi-family lending.
A few takeaways:
Most smaller apartment building owners are individuals or small entity owner-investors. Think: sole proprietor or small business.
Interesting because the historical CMBS cumulative default rate for loans with collateral secured by properties with less than 50 units is lower than properties with more than 50 units.
Despite the attractive credit profile of small multifamily properties and their owners, finding reliable and competitive financing has historically been a challenge.
"...we find that these borrowers are typically local and hands-on, and that makes a difference...”
Freddie Mac Multifamily created a line of business dedicated entirely to financing small multifamily buildings (5-50 Units).
Learn more or explore small loan options at www.freddiemac.com/small-loans.
Check out the full article here.
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