Real estate investment has become an extremely popular way for people to try to make money. Owning an apartment or multi family housing unit can be a way to wealth, however, real estate investing requires a lot of time, knowledge and up-front capital.

Apartment building loans are often offered on two different levels. The first usually requires a minimum loan of $500,000, is a smaller unit, but comprised of no less than five units. The second is for loans over $3,000,000, and is designed for financing much larger units such as large apartment complexes, student housing, or senior or assisted living facilities.

Most lenders will provide financing for units in good condition, and have little deferred maintenance. If the building is in poor condition, you may not qualify for a loan, or have to pay a much higher down payment.

Apartment building loan sources are numerous to say the very least. Before speaking with anyone it’s helpful to have a list of question you may want to ask. For example:

Is the property fully leased (about 95%)?

Do you want to borrow more than 80% of today’s value?

Are you willing to re-finance the property or are you planning on selling in the next 3 years or so?

Will you accept a loan with a large prepayment penalty?

Do you expect leasing activity in the building over the next 3 years(either from existing or new tenants)to increase the property value greater than 25%?

If the property value is increasing more than 25% over the next 3 years, will the loan request today be 75% or less of the increased value?

Will 50% of the building leases expire in any one of the next 3 years?

Are you installing land infrastructure, gutting the building or converting the use?

Is the property value greater than $10 million?

Apartment building financing, or multifamily property financing, is in a constant state of change. As a result, multifamily finance providers must have thorough knowledge and awareness of available debt programs and be prepared to quickly analyze financing options.

Visit Security National Capital today to learn more about apartment building and multi family property loans.

Michael Southard is the Vice President of Security National Capital.

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A section 1031 tax deferral allows an investor to sell a property, then reinvest the proceeds in a new property and defer all capital gain taxes. Specific conditions for the exchange state that it must be of “like-kind” and must take place within 45 days of the close of the sale. To understand more about how this exchange works, consider the following example:

If an investor has a $200,000 capital gain and incurs a tax liability of $70,000 in combined taxes when the property is sold, only $130,000 remains to reinvest in another property.

If the investor had, for example, a down payment of 25% and a loan-to-value ratio of 75%, the seller would only be able to purchase a $520,000 property.

If the same investor chose a 1031 exchange, however, and had the same down payment and loan-to-value ratio as above, the entire $200,000 of equity could be reinvested in an $800,000 purchase of real estate.

The exchange offers a powerful protection for investors from capital gain taxes. However, knowledge of what qualifies for a 1031 exchange, and how it works is crucial to receive the full benefits that it can offer. For example, not all real estate qualifies for the exchange. Business property and investment property are the only types that will qualify for the tax deferral.


Both the property sold and received must be of “like-kind”, which is often mistaken to mean the exact types of properties. The like kind provision for real property is quite broad, and includes land, rental, and business property. A 1031 exchange may actually be mixed as to type and still be like-kind. For example, you may exchange land for a duplex, or a commercial building for a retail store. The like-kind provision for personal property is more restrictive.


One difficult aspect of making a 1031 exchange is finding a new investment property within the 45 day limit. The IRS is very strict about complying with the restriction and rarely allows extensions. Once a replacement property has been found, the next challenge comes in obtaining the extra capital needed to complete the exchange.


Fortunately, there is an easy way to overcome that challenge. Obtaining a bridge loan is an easy and effective way for a commercial borrower to finance a property for a short period of time. Bridge loans are usually offered for terms of 12-36 months, just the amount of time that a property owner would need for a 1031 exchange.

Visit Security National Capital today to learn more about a 1031 exchange.

Michael Southard is the Vice President of Security National Capital.

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Whether you are starting a manufacturing company or opening up a coffee shop, SBA loans are the way to finance your small business. Small business loans are loans that are guaranteed by the Small Business Administration, which was started to assist entrepreneurs in forming successful small businesses. According to federal government research, small businesses employ fully one-half of America’s private sector workforce and over 99 percent of all employers in the U.S. are small business owners.

There are several benefits to SBA loans, including the many licensed lending partners nationwide. The SBA establishes guidelines, reasonable loan terms, and is able to offer better interest rates and options to businesses in the early stages of development.

There are some difficulties in obtaining a small business loan, however, beginning with the requirements for potential borrowers. Lenders will consider the size of your business, including number of employees, and your company’s average revenue in certain industries, such as construction or wholesale.

When you call your lender to be considered for a loan, plan on answering a lot of questions about your business. Some information they might ask you for is a business profile (type of business, sales revenue, number of people you employ, and how long you have been in business), a description of the money you need and how you plan to spend it. Also be prepared to provide collateral and explain how you plan to secure the loan.

There are several different types of SBA loan options available, including:

Basic 7(a) Loan Guaranty,
Certified Development Company (CDC), a 504 Loan Program
Microloan, a 7(m) Loan Program

More information about these types of loans can found through your private lender, or the Small Business Administration.

Michael Southard is the Vice President of Security National Capital.

To learn more about the SBA Loans offered and to see if you qualify for one, visit Security National Capital today.

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