Archive for July, 2016

LOAN ORIGINATION ON SMALL APARTMENT BUILDINGS

Wednesday, July 27th, 2016

On occasion we are asked to make a new loan on a small apartment building.  Usually 10 units or less, small buildings are ones many times overlooked by the big banks.  Banks these days like to make loans of over $500,000, when it comes to loans of a smaller range, they either charge too much or have an ‘add-on’ for the interest rate.  The occasional new loan has it place here at DMC.  Recently we made a $275,000 loan to a customer who owned 2 units on a lot in San Diego.  She inherited the property recently and didn’t have the reserves to show, nor the high credit score that typically a bank would look for.  The units were rented and there was plenty of cash flow to make the loan and have the fixed expenses with reserves covered.  We are happy to accommodate this type of loan on a regular basis.  Call, click or fax over your loan request, we will get right back to you.