Debt yield hasn’t traditionally been a primary commercial real estate loan underwriting metric, but more lenders are incorporating it into their criteria. In the current real estate market, measuring debt yield ratios provides lenders with a stable assessment regardless of unusual or changing conditions.
Challenges facing the commercial real estate market brought on by tightening lending policies among many small and regional banks, which have been a key source of commercial loans. Still, due to continuing U.S. job gains, net absorption has been mostly positive nationwide, Yun said, with the apartment, industrial and retail sectors helping to keep the industry relatively stable.
Many multifamily homes for sale were scooped up for depreciation, 1031 exchanges, or to add more units to an existing portfolio.
One of the most common questions I get is, “How Do I Get A Multifamily Loan?” The simple answer, “Be Prepared!”
If you’re new to the multifamily real estate sector of the commercial market, you may find that it is vastly different from other real estate niches you have previously invested in.
One thing that Chicagoans know all too well is that renting in the city comes at a price, and in recent months, rent prices have continued to increase.