LichtensteinRE.com has been selling multifamily real estate in the New York area since 1986. Together with affiliated Andrew Lichtenstein, Inc buyers have used the mortgage financing procured by Andrew Lichtenstein to leverage their purchase of investment property and pay down their mortgages.
In at least one case the principal investor paid off the mortgage entirely enjoying free and clear fee simple ownership.
Investors have a choice of maintaining high leverage and reduced present cash flow enabling the investor to grow its real estate investment portfolio in a greatly accelerated pace.Alternatively, investors can choose slower growing reduced real estate portfolio by aggressively amortizing mortgage indebtedness.
Timing the market has proven difficult and the long term vacillations of the real estate market has shaken out poorly timed aggressively leveraged real estate investors.Many leveraged investors have lost their entire portfolios when the real estate market turned down, rental markets consolidated, and credit markets tightened.On the other hand conservative owners who focused their efforts on first becoming free and clear survived the ebbs and flows of both the credit markets,price fluctuations as well as the rental markets.
While Andrew Lichtenstein recommends longest term self-liquidating self-amortizing fixed rate mortgages that are the industry norm for single family homes; however, this type of financing for multifamily is virtually non-existent as common as a needle in a haystack.However, 15 year fixed self-liquidating financing is readily available and some neighborhood banks offer 5 year fixed rate terms with optional rollover options going out 25 to 30 years. These offer the benefit of self-amortization;however, no one can foretell what future interests rates will be at the end of each 5 year term. With no rate ceiling there is no telling whether future debt service will be beneficial or untenable.
Andrew Lichtenstein has a multifamily lender that offers 30 year self-amortization but with fixed rates during the first 5 or 7 years with the remaining 23 to 25 year ARMs reset annually. Andrew Lichtenstein has a multifamily and mixed use source of capital that is truly 25, 30 and even 35 year fixed rate and self-liquidating with rates as low as 3.25% today.
If you share Andrew Lichtenstein’s personal dream of owning investment real estate free and clear he would love to help you realize your goal that will bless you,your family and your investors.
By Andrew Lichtenstein
Andrew Lichtenstein, Inc.
5770 Palisade Avenue
Riverdale, New York 10471
Fax: (866) 591-1138