Multi family lending

Multifamily real estate is one of the safest and popular investments among professional thanks to a stable income and low vacancy rates.  Buyers in the past used traditional financing, but more recently, multifamily hard money loans offer an alternative capital source for investors. 

Private capital works for investors because sometimes, you don’t have all the time in the world to secure financing.  Waiting for a bank to approve your loan, submitting endless paperwork just doesn’t fit well in a competitive environment where you need to move fast.  Hard money loans are the perfect tool for investors looking to close a deal quick.  Traditional loans from banks can take up to 45 days or longer, hard money loans can close in as fast as a week.  Once the deal is secured and the property purchased, the buyer is free to refinance the property with a traditional loan.

Another less known advantage of hard money loans for multifamily – flexibility.  Too often, we get buyers who just got rejected by a bank because the apartment building did not fit a ‘perfect lending’ criteria.  Investors and bank can look at the same deal and reach two vastly different conclusions.  Private lenders don’t have arbitrary lending criteria thanks to asset-based lending.  

Here is our general guidelines for multifamily investments:

• Purchase/Refinance – up to 80% of the purchase price
• Rate – Starting at 8%
• Origination – 2 points and up
• Term – flexible
• Minimum Loan Amount – $25,000
• Bad Credit/No Credit programs available 
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All of our underwriting is asset-based. Note that non-performing assets (vacant or distressed) will be subject to income verification in order to get approval.