A Multifamily building eligible for commercial financing is defined as a structure having at least 5 or more units with the residences for permanent habitation. The major factor in determining if you can qualify for a multifamily commercial mortgage is the property itself. These are a few key characteristics and considerations on a multifamily commercial building to make it eligible to be financed:The Condition.1. Signed leases with terms of 1 year or greater.2. What are the number of bedrooms and bathrooms.3. What is the history of the vacancy rates.4. Do the units have separate utilities to bill the tenants directly.5. Is your place professionally managed.6. Is there any deferred maintenance, damage or functional obsolescence to address with the building.7. Does the facility have a pool, clubhouse or tennis court and other amenities.8. Is the facility close to employment, education, shopping and attractions with public transportation and access to major streets and expressways nearby.Not only are these characteristics important in determining if your place qualifies for financing, these are major factors in determining its value.The Income.In addition to the condition, the income as compared to the expenses is a key to determine both the value and how much mortgage you can qualify for. The greater the income in relation to expenses the easier it is to qualify for a commercial mortgage. The best rates are offered by the lenders that are both conservative and accept the least risk. The most conservative lenders require 1.5 times the income to the expenses to qualify for financing. If units are in good condition and have a little less income there is still financing available down to as low as 110 per cent of the expenses.The Management Company.The experience of the property manager is also a consideration to financing. If you have purchased a commercial building or are considering doing so and you do not have experience owning or managing the real estate it is important to hire a professional manager. The larger properties almost all have professional management company. When considering smaller units you may believe they are an unnecessary expense, but professional managers increase your ability to qualify to fund commercial project if you do not have management experience.The Owner.Quite often on larger buildings the financing is based solely on the property. But for smaller multi family projects the lenders require a personal guarantee and the review, income, credit and assets just like a residential investment financing. The typical down payment required is 20% to 30% for properties and the lender require the borrower to have reserves for repairs, vacancies and other contingencies.The Loan.Apartment commercial loans are generally structured with terms written with 5, 7, 10, 15, 20, 25, and 30 years terms with or without balloon payments. For this type of commercial loan expect to provide full documentation including:1. Last 3 years of operating statements.2. Year to date operating statement.3. Property rent roll.4. Last 3 years federal tax returns of borrower.5. Personal financial statement(s).6. Digital photos of the subject apartments.There are multifamily commercial mortgage products that can help people with significantly impaired credit, these have higher commercial loan rates. For borrowers with great credit and assets that deserve the best rates, funding is also available.
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General Liability Insurance for Small Business Overview: A Quick Beginner’s Guide to Policies
Each business has its own needs, but you still want to make sure you are covered by some insurance, no matter how small your company is. In short, general liability insurance for small business tends to cover things like personal liability for members and the consequences associated with third party claims for property damage / injury. You can add additional items of medical injury for yourself and damage for your own property.
When you are looking over CGL policies, you’ll see terms such as “General Aggregate Limit”. This refers to the advertising or personal injury, medical payments, and/or fire damage. “Operations coverage” refers to the basic coverage afforded for property damage and bodily injury due from your or an employee’s negligence.
You might also see “Products and Completed Operations Limit” depending on your line of work. This coverage includes protection for those who manufacture or sell a particular product, or are contractors providing services. If damage occurs and your product or negligent service could be responsible, you’ll obviously face a lawsuit. This is a type of separate aggregate limit and the claims of its nature will not reduce the General Aggregate Limit, although it will still be subject to limits such as “Per Occurrence Limit” for each claim.
General Liability Insurance for Small Business Limits and Claims
The “Per Occurrence Limit” refers to the maximum amount that the policy will pay for a single claim arising from your Personal or Advertising Injury / Operations / Products and Completed Operations. Each of these claims WILL decrease the separate aggregate limit.
A few other terms you’ll find include Personal and Advertising injury, Fire Damage, Medical Payments, Bodily Injury, and Damage to 3rd Party Property, which are all self-explanatory.
Your industry will also play a role in the exact type of coverage you need. When searching for general liability insurance for small business, see if there is any tailored insurance available. Choose a company that specializes in businesses such as yours and have coverage tailored to risks prevalent in your particular field. Consider the risks you’ll likely be facing that might not be covered in a GCL or Business Owner’s Policy (BOP) and have those risks included in your coverage.
Another very important thing to look for is claims responsiveness. Only get general liability insurance for small business from a company that has a lot of positive reviews – especially regarding its claims response time. Claims should be easy and fast to process. One provider in particular to start with is Hiscox Business Insurance. The rates are fare, claims process is fast, and Hiscox offers free, instant quotes on its website.