When I first started working with large multifamily lenders, I was surprised how few of them made loans for apartments under 50 units. Since larger transaction volumes support larger fees, it makes sense that nearly all of the major real estate lenders cater to the top end of the market.
In fact, based on the level of customized service they provide and the teams they need to provide this level of service, some have told us it’s simply impossible to profitably underwrite loans for small properties — the fees just aren’t large enough.
This segmentation among lenders has impacted the way technology has developed to serve the multifamily industry. Over the past 20 years, a strong data ecosystem has evolved around the 50-plus-unit market.
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