How to Structure Your Commercial Apartment Deal in 3 Ingenious Methods

There is a solid underwriting formula behind this commercial mortgage.

Market rental rates are thoroughly discussed in the income approach section of the appraisals report.

An interesting distinction here, is that the focus on the appraisal for potential rental income (income approach), often lowers the value on most owner occupied properties.

Stated Income Commercial Mortgage - What Are the Lenders Thinking?

Wrap Around Mortgage: this is the situation where you will take over someone else's mortgage. Your mortgage to them is for $100,000. They get payments based on $100,000 and the mortgage is wrapped around the $80,000 mortgage.

Your general interest payment is $1,000.

Splitting Off the Property: let's say you own a 10-unit apartment building that you bought on 3 1/2 acres.

Option: you can get an option on an apartment.

Wrap around mortgages, splitting the property and options are just three more great ways to structure a multifamily property deal.