The Green Team

July 13, 2017

In today’s world, finding ways to be green and save the earth is on the forefront of importance. We all know there are thousands, if not millions of ways to be green, and have a less impactful ecological footprint. The problem with some of these ways:

  • It can take a LOT of effort

  • It can take a LOT of time

  • It can cost a LOT of money

  • It can be VERY complicated

 

For people who are motivated by money (I am one of those), it can be hard to force myself to “Be Green” when it’s taking away my time and money that could be spent investing in myself and my company. So what we are looking for is a way to be green that also:

  • Easy to Do

  • Furthers the success of our business

  • Saves us Money

 

Now doing all of these things while being green may seem impossible, but it’s not! For people who own multi-family properties nationwide and also want to have a positive impact on the environment, I have your answer:

 

Multi Family Green Financing

 

With our Multi Family Green Financing program, we actually have the ability to lower the costs of Purchasing, Constructing, and Refinancing a multi-family property while having a positive impact on our earth.

 

How does this work?

 

It’s simple. If the building is under construction, all that needs to be done is meet at least one Multi Family Green Certifications.

 

If the building is older, and you’re wanting to purchase/refinance it, just a few improvements that reduce the overall Energy or Water consumption by 20% is all it takes to meet a certification. Now although 20% might seem like a lot, often all it takes is getting new toilets or different lights.

 

What does doing these things to the building do for the owner?

 

How does up to .39/100 percentage points off the interest rate sound? To give an example let say this is the situation:

 

You want to purchase an older, 30 unit apartment complex. The purchase price is 5,000,000 and and you get an 80% Loan landing you at 4,000,000.

 

Here are your options:

 

1. Do the loan like you have it, say at a 3.75% interest rate. What this gives you is $150,000 in annual interest payments or $12,500/month in interest payments.

 

2. Take a look at the property and find that if you replaced all the toilets in this 30 unit complex, it’d reduce by 20% in energy consumption. Let’s say there are 50 toilets total. You find that energy efficient toilets are $150 each (Using Home Depot as an estimator).

 

$150 * 50 toilets is $7,500.

 

Given that you are also able to finance up to 80% of the renovations needed, your new loan amount is 4,000,000 + 7500(.8) =$4,006,000, but since you did these changes your interest rate will drop to 3.36

 

What’s the outcome?

 

Your new annual interest payment is $134,601 or 11,217/month

 

Now let’s put that into perspective:

 

That is you saving around $1275/month off your interest rate for having an extra $1500 of out of pocket expenses.

 

$1275/month equates to $15,300 over a year, and $107,100 over a 7 year period. How awesome would it be to spend such a small amount of money, and have it have such a huge effect on your business? 

 

Taking the extra steps to improve the eco-friendliness of your property will not only benefit the environment, but will also provide an investment that will pay off for the owner in a short period of time. Contact us at soundmortgagebrokers@gmail.com for a consultation on how to achieve Green Financing! 

 

 

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