Obtain a Multi-Family Commercial Real Estate Loan for an Existing Property

May 8, 2022

Are you an investor or prospective property owner who is looking to acquire a multi-family property along the Texas Gulf Coast? We encourage you to learn how Texas Gulf Bank can support the purchase financing of an existing multi-family property with positive cashflow.

By obtaining a multi-family commercial real estate loan through our bank, we can help you achieve your financial goals for the new acquisition. Find out how we can help you on the path to generating revenue from the property through our expedited loan process.

Multi-Family Real Estate Property Types for Financing

We consider multiple lending factors for the potential purchase acquisition of a multi-family commercial real estate property. A central factor is the nature of the property for which you are seeking financing. We will review a loan application for the following property types:

  • Standard multi-family properties such as a duplex or condominium.
  • Apartment complex.
  • High-rise building.
  • Student housing facility.
  • Senior housing or an assisted living facility.
  • We may also consider other existing multi-purpose facilities that combine residential with other uses (e.g. office, shopping, and healthcare).

No matter the type of property, our goal is to confirm that the existing multi-family property with positive cash flow has reliable tenants, and there are no problem areas that could negatively impact the viability of the property or expose our bank to risk by funding the acquisition.

If the property passes our initial screening, then we will work with you to advance the loan application process to consider available financing options.

Applying for a Multi-Family Commercial Real Estate Loan

On commercial loans, our bank offers term loans for the purchase of multi-family properties with existing cash flow. We typically require at least 20-25% equity down on a purchase and we offer 20 or 25-year amortization.

We may require additional equity, though, in order to reach what is known as an acceptable Debt Service Coverage Ratio (DSCR). We utilize the following benchmark to make this determination:

  • Net Operating Income per year divided by annualized principal and interest payments of the property’s debt.

On commercial loans, some investors or prospective property owners may find it challenging to put down the necessary amount of equity in the deal to reach this benchmark. If you are able to at least put down 20-25 percent equity, then we will certainly talk to you about how to address this hurdle.

We will also review other factors that impact your viability to apply for this type of commercial real estate loan. For example, we expect applicants to provide the following information and records for our loan officers to review:

  • A contract on the property you are seeking to acquire.
  • A rent roll on the subject multi-family property.
  • Company and individual tax returns for the past three years on all borrowers and guarantors.
Why Apply for a Multi-Family Loan Through Texas Gulf Bank?

Texas Gulf Bank is proud to offer personalized service, competitive terms, and a relationship-first approach to our commercial loan service. Because of our deep experience with commercial loans, we can provide you with well-tailored guidance on the financial implications of your planned purchase acquisition.

When you work with our loan officers, you will notice our commitment to a quick process to review the viability of your transaction. You will walk away confident with what is feasible and necessary to effectively acquire an existing multi-family property.

The expediency of our initial support flows directly into the application review process. We strive to offer faster turnaround times on loan requests from start to finish compared to other banks in the area.

Other banks and financial institutions might need to go through multiple channels and decision-making groups before approving the loan. However, because we are an independently-owned bank that is backed by substantial lending capacity, we can expedite the process of reviewing your loan, completing the approval process, and providing you with access to the necessary funds to complete the acquisition.

We will ensure that the loan amount and loan terms are satisfactory to meet the terms of your purchase contract. Then, once the loan is funded by our bank and you can complete the acquisition, you will be well-positioned to start receiving revenue from the cash-flowing property.

Talk to Texas Gulf Bank About a Commercial Real Estate Loan

Now is a great time to start working with Texas Gulf Bank to support your commercial real estate activity. We believe in our loan programs and our team has the ideal lending approach to meet the needs of our commercial real estate customers.

Once you work with Texas Gulf Bank, we are confident you will want to continue working with our bank. We are interested in developing long-term relationships with commercial real estate investors and owners. This way, we can continue to provide you with personalized service and honest assessments of your future real estate opportunities.

Let’s get started with a review of your current transaction. Use the form below to contact our team to start the loan application process. We look forward to considering your application for the purchase of a multi-family commercial real estate property.

Have questions? Contact us directly by phone or email to speak with an expert member of our team.

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All Loans Subject to Credit Approval