MULTI-FAMILY (5+ UNITS)
Multi-family apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.
Best alternative to hard money loans
Multi-Family Loans
SHORT TERM:
12 – 18 Months (Extended Terms Available)
Loan Amount:
Short-Term: $250k – $2.5M ($1M Max per unit)
FICO:
Short-Term: 660 Minimum
LTV:
Stabilized Bridge
Purchase: Up to 75% of the As-Is Value
Refinance: Up to 70% of the As-Is Value
Cash-Out: Up to 65% of the As-Is Value
Fix & Flip
Purchase: Up to 80% of the Purchase Price + 100% of Renovation Costs
Refinance: Up to 75% of the As-Is Value + 100% of Renovation Costs
Cash-Out: Up to 70% of the As-Is Value + 100% of Renovation Costs
LONG TERM:
Multi-Family Apartment Buildings (5-9 Units)
Term:
30-Years (Amortization Options Available)
Loan Amount:
$100k – $2M
FICO:
680 Minimum
LTV:
Stabilized Bridge
Purchase: Up to 70% of the As-Is Value
Refinance: Up to 70% of the As-Is Value
Cash-Out: Up to 65% of the As-Is Value
We make financing for apartment buildings easy.
To qualify as a multi-family investment property, the building must have five or more dwellings (apartments), whereas buildings with four or less units are still classified as residential 1-4 investment properties in most states.
To real estate investors, a multi-family apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.
While a larger multi-family property lowers the risk for investors, it's important for brokers to communicate that lenders typically assign a higher risk profile to apartment building loans since the properties are harder to liquidate than smaller residential investment properties.
Lenders often use a lower LTV in financing an apartment building to offset the increased risk, so your borrower may need to provide a larger downpayment.
Financing for multi-family buildings.
As an investor if you’re interested in financing for apartment buildings with five or more units, asset-based mortgage programs can help meet the needs of self-employed borrowers who often invest in multi-family buildings and write off their expenses against income. While this is a wise tax-saving strategy for real estate investors, it reduces the borrower's personal income and may make it difficult to qualify them for a traditional mortgage loan.
Asset-based investment property mortgage programs are an excellent alternative because they focus on the value of the property and its revenue-generating potential, thus eliminating the personal income reporting requirements of traditional loans.
Flexible solutions for financing an apartment building.
FlexTerm loan program is great option for multi-family property investors since it offers:
A simple financing solution on a purchase or cash-out refinance.
Interest-only payments up to 10 years.
The flexibility to remain in the loan for up to 30 years with no balloon payment.
Lower monthly payments than a hard money loan.
MULTI-FAMILY (5+ UNITS)
Understanding the differences of mixeduse property financiNG
Residential, Commercial, Industrial and Institutional
Mixed-use property financing applies to properties that are comprised of multiple units zoned for different uses, including residential, commercial, industrial and institutional. Almost any building with at least two units of different usage qualifies for mixed-use financing.
Both business owners and real estate investors may seek a mixed-use property loan. Business owners will often live in one of the residential units and operate out of the commercial space while real estate investors will typically act as the landlord for both the residential and commercial tenants.
While residential tenants provide a more stable source of rental income, commercial tenants, such as ground floor retail, are usually willing to pay more for rent. Therefore, commercial tenants play an important role in evaluating the revenue potential of mixed-use properties. As a result, the value of two different buildings in the same area may differ simply because of the composition of their tenants.
Financing for mixed-use buildings.
Our experience in providing mixed-use property financing allows us to see the potential that other less-experienced lenders may miss.
Our FlexTerm mixed-use property financing program offers your investors easy qualification on the purchase or cash-out refinance of a mixed-use building and includes the flexibility to remain in the loan for up to 30 years.
Same area, different value.
Since our FlexTerm loan is asset-based, personal income isn’t required. The loan amount is based on the value of the property and its revenue-generating potential. This is where our expertise in evaluating the tenant mix and value of mixed-use buildings is essential in approving loans for self-employed investors and small business owners.