An apartment refinance is won or lost on the operating statement, and the single most useful thing an owner can do is present one an underwriter does not have to argue with. The lenders in this record publish their maximums; what they do not publish is how much of your net operating income they will accept, and that is where deals move.
The file, in the order they will ask for it
A trailing twelve month operating statement, a current rent roll with lease start and end dates, the last two years of tax returns for the property, a schedule of capital expenditure, and your own personal financial statement and schedule of real estate owned. If the building has had a bad year, explain it in the file rather than waiting to be asked.
What the underwriter will do to your numbers
Impose a vacancy assumption, usually market rather than actual. Add a management fee whether or not you pay one, because a lender taking the building back would have to. Add a replacement reserve per unit per year. Each of those reduces the net operating income the loan is sized on, which is why owners are so often surprised by a smaller loan than their own arithmetic suggested.
What that leaves you with
Of the firms in this record speaking for themselves: LendingOne publishes up to 80% LTV on a rate-and-term refinance and up to 75% on cash-out; Lendmire publishes 75% maximum cash-out with a 700+ FICO; Commercial Lending USA publishes up to 80% on one-to-four unit residential and 75% on small commercial of five or more units. The five-unit line matters more than any other single fact about the building.
Questions people ask about apartment building refinance
What documents do I need to refinance an apartment building?
A trailing twelve month operating statement, a current rent roll, two years of property tax returns, a capital expenditure schedule, and your personal financial statement and schedule of real estate owned.
Why is the lender's NOI lower than mine?
Because underwriters impose a market vacancy assumption, add a management fee whether or not you pay one, and add a replacement reserve per unit. All three reduce the income the loan is sized on.
What LTV can I get?
Up to 80% appears for one-to-four units and on LendingOne's own rate-and-term programme; 75% is the common published figure for cash-out and for buildings of five units or more.