5. How to buy and finance apartment buildingsby Tim Manni
Number five on our list of the top-10 articles for 2013 is “How to buy and finance apartment buildings.”
During 2013, real estate investors took advantage of low home prices and snatched up a large portion of the available housing inventory. That mad rush would explain the popularity of our older article “How to buy and finance apartment buildings.”
Another reason for the popularity of this article is that HSH.com hasn’t written much about investment purchases. While we tend to focus on consumers buying or refinancing single-family homes, we learned there was clearly a demand for investment-purchase content.
Apartment mortgages bear little resemblance to the loans people take out when buying houses. Properties with more than four units are considered commercial properties and come with their own funding and underwriting rules. Fannie Mae supplies much of the financing for apartment buildings, condominium complexes and cooperatives through a nationwide network of Delegated Underwriting and Servicing (DUS?) and other mortgage lenders.
Here’s what you need to know before you buy an apartment building …
Be sure to read “How to buy and finance apartment buildings” in its entirety.