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For the best TOMorrow,
vote for BERMAN today!

Vote for BERMAN August 2 nd

To learn more visit www.TomBerman.com and

@ VoteTomJBerman

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Paid for by the Friends of Tom J. Berman | 2550 S. Telegraph Rd. | Suite 108 | Bloomfield Hills | Michigan | 48302

2112090

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5 Tips to Get More
Cash Out of Your
Rental Property

StatePoint

The Boutique Builder

248.408.3333

www.AWoodwardHome.com

ORCHARD LAKE

It’s time for us to downsize, or we’d never
leave this wonderful house, lot, and lake!

The owner-builder built it. At this price point, you know it has
every desirable and timely feature, including a three-story interior
waterfall. It is contemporary, clean, sharp, and only 13 years
old, beautifully maintained to the highest standard. It is on an
interesting street of large beautiful homes; on an isthmus between
Orchard Lake and Cass Lake. Our view is of clear water, sandy-
bottomed, uncrowded Orchard Lake. We play on it and in it.

Ask our realtor to walk you through and see if you share the
passion!

$2,300,000

Contact Edee Franklin

248.229.6021

edee@edeefranklin.com

34 July 28 • 2016

2097900

I

f you own a small rental property
— now, more than ever — it’s good
to be you. For the better part of a
decade, a robust multifamily market
has delivered low vacancies and higher
rents.
Apartment values are up more than
120 percent since the end of 2009,
according to Moody’s. Experts say that
offers a great opportunity for owners
of small apartment communities.
“Now is a great time to refinance,
especially if your loan originated
in more difficult economic times,”
says David Brickman, Freddie Mac
Multifamily executive vice president.
“Multifamily market growth is ongo-
ing and rates are still near historic
lows. Without the right preparation,
though, you could find yourself short-
changed.”
To put the most cash in your pocket,
consider these five tips from the
experts at Freddie Mac Multifamily:
• Aim for accuracy: Keep accurate
financial statements for your property.
If your records are spotty, it’s difficult
for lenders to accurately size a loan,
which could reduce the cash you take
away from the deal. To get the most
bang for your buck, make sure you
have at least three years of historical
annual operating financial statements
and monthly rent rolls. Include expla-
nations on your statements for any
past capital improvements.
• Show your property some love:
Long-term ownership and regular
property maintenance demonstrate
commitment and pride of ownership.
It also goes a long way toward getting
you the best loan terms possible. A
lender looks for clean, well-maintained

communities. Overdue maintenance
issues could mean your lender may
require you to escrow a portion of your
proceeds to cover repairs, reducing
your cash in-hand after closing.
• Strive for stability: Volatility
in expenses, income or occupancy
makes it difficult for lenders to project
underwritten income. Strive for con-
sistent operations. If you do have an
isolated spike in expenses or a dip in
occupancy, be sure you can provide a
justification.
• Don’t count out affordable prop-
erties: Some lenders might shy away
from cash-outs on older properties
with lower-than-market rents. Look
for a lender who does not. For exam-
ple, with Freddie Mac’s Small Balance
Loan program, a cash-out refinance is
possible as long as the property is safe,
provides a stable cash flow, is well-
maintained and the owner has suffi-
cient net worth, liquidity and a proven
track record. This mortgage offers
flexibility, with a choice of fixed-rate
and hybrid adjustable rate mortgages
available.
• Take a fresh look. Even if you
already have a go-to source for financ-
ing, now is a good time to evaluate
alternatives, especially if you have
owned your property for at least three
years and it has experienced rent
growth, or you have made improve-
ments to boost rent potential.
To learn more about growing your
rental portfolio, improving returns on
existing assets, or meeting other finan-
cial goals, visit FreddieMac.com.
Owners of small rental properties
should consider taking advantage
of the current market. A few smart
strategies can mean more cash in one’s
pocket.

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