Hyak Financial

Multifamily Financing for the Little Guy

Now may be the time buy…

Low rates, low vacancy, low prices.

Are we at the bottom of the market? Nobody really knows, however this is what we know.

Interest rates remain low. Fannie Mae 10 year rate is as low as 4.80% today. Many investors I work with used rates (post 2007) in the mid 5’s to run financial analysis on a given project. If it worked then the deal would move forward if not then it was dead. The risk of an interest rate spike was not worth investing the capital and depleting liquidity. Now with rates low again buyers are moving in.

Low vacancies. The National average is 6.2% but varies on region. The main reason for the low vacancy is due to job loss and foreclosures. Unless the financial markets loosen up renting will be many people’s only option. Regardless of when lending will loosen many people that went through the tough times will no longer qualify. Credit score, income, and previous financial hardships will preclude them for a number of years.

Low prices. Yes that is relative. There are many very good deals in the market if you look. But looking and not reacting swiftly will leave you on the sideline. Investors are waiting to pounce on the great deals often paying cash and closing in days not weeks.

How do you as the ‘little guy’ take advantage of the market and act like the ‘Big Boys”? Do your homework. Work with a lending professional to have a loan ready to go. Remember cash is king now more than ever so expect to put 20% or more down. Once your finances are in order don’t just talk to a real estate broker but tell everyone you know that you are looking. Many deals do not hit the market as people sell out of desperation. And lastly, pounce. If you find something you like make an offer right away. Rates, price, terms may change but a deal is a deal and will go away in a hurry.


Hyak Financial is a commercial mortgage broker with over 50 years of banking and finance experience. Contact us to learn more about our products and services. If you have a commercial mortgage scenario that you would like our feedback on, simply complete our online scenario form and we will get back to you promptly.

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