When we talk about “Multi-Family” investing, we are normally talking about buying / selling apartment buildings. But, in fact, it can be any property that is 5 or more units. For example, a portfolio of 7 duplexes (14 units) would be considered multi-family.
Many multi-family investors look for “value add” properties, which simply means properties where they can improve the Net Operating Income (NOI) with things like property renovations (interior and/or exterior), increased rents, better management and marketing practices, and higher occupancies. The problem is that this all takes capital, and you better have a lender that understands the multi-family investing business if you want to have a chance of securing the capital you need. That’s where we come in!
We not only know this business, we are investors ourselves. So when we find a prospective property, we align financing with our investment strategy for that property. Does the property need significant rehab? Maybe a Non-Recourse, Interest Only, 2 year bridge loan with 25 yr amortization is the answer. Then, after the rehab is complete and our NOI has been driven up, we might do a cash-out refinance with Freddie Mac backed, long term debt and ride the cash flow of the newly renovated complex. The point is, you need someone who understands your investment strategy and has access to the capital to pull it all together — and pull it all together FAST! Nothing kills a deal faster than a delayed timeline, and we understand that better than anyone! We’ve got the capital waiting for these type of investments and can lend up to $50M on a project, so give us a call and lets talk about yours.
MULTI FAMILY FINANCING PROGRAM HIGHLIGHTS
Please note that these are just a few of the options we have available. We will work with you to find the perfect fit for your project.
BRIDGE TO FREDDIE MAC
- Uses: Purchase, Recapitalization, Refinancing (Including Cash-Out), Upgrades and/or Seasoning, Expedited Closings
- Good for Non-Stabilized Properties, Rehab/Renovations
- Loan Size: $1MM – $7.5MM
- Leverage up to 85% LTC/80% LTV
- Terms: Typically < 2 yrs with 6 month to 1 yrs extensions available
- Interest Only
FIXED RATE PROGRAM
- Uses: Acquisition, Refinance, Cash Out
- Property Types: Multifamily, office, retail, industrial, self-storage and hospitality
- Loan Size: $1MM – $25MM with portfolios up to $100MM
- Stabilized properties
- Terms: 2-10 yrs (can consider longer terms on case-by-case basis) with up to 30 yr amortization
- Flexible payment schedules
- As low as 1.20x DSCR
- No minimum FICO stated
- Can close in less than 30 days when requested
FIXED RATE FREDDIE MAC SBL PROGRAM
- Loan size: $1MM to $7.5MM
- Terms: Fixed 5, 7, 10 yr, Hybrid 20 yr ARM with initial 5, 7, 10 yr fixed
- Prepayment: Declining schedules available
- 120x DSCR Top, 1.25x Standard, 1.30 Small/Very Small
- Stabilized properties
- Amortization: Interest only partial term and full-term may be available with 30 year amortization.
- Minimum 650 Avg FICO, Net Worth equal to loan amount, Liquidity equal to nine months debt service.