Multifamily loans can be availed by both real estate veterans as well as first-time real estate investors who see a good opportunity.
Multi family Financing
Multifamily financing refers to a loan or mortgage which is used to purchase or refinance either small multifamily properties with 2 to 4 units or large apartment buildings which have 5 units or more.
While you can avail multifamily loans through conventional mortgage from traditional banks and financial institutions, there are several drawbacks to this. For example,
- Conventional mortgages can only give you long-term loans that is 15 to 30 years. They are not suitable for those looking for short-term multifamily financing options
- They only provide loans for properties with 2 to 4 units. If you need loans for properties with 5+ units, conventional mortgage is not feasible
- Conventional mortgages will not finance a rehab or a renovation projects. So you will only get a loan if the property you want to buy is not in good condition. Which is not usually the case; especially if you want to make a sizeable profit
Another option for multifamily financing is Government-backed financing; that is multifamily financing which is sponsored by Fannie Mae and Freddie Mac. While they do provide loans for both short as well as long-term, the problem here is that time it takes to approve is very long. It ranges anywhere from 60 to 180 days. In multifamily financing, as with most real estate deals, time is of the essence. And an approval time of 60- 180 days may mean you lose out on a great deal by the time your loan is approved.
You can also get a portfolio multifamily loans which are typically non-conforming. Again they come with terms between 3 to 30 years and are not exactly suitable for short-term financing.
So what happens if you require short-term multifamily financing? And are confident that you can either flip in a short period of time or get more stable sources of credit in future?
This is where Gold Card Capital comes in. You can use our interest-only loans to tide you through your short-term financing requirements. The terms will be for 6 to 36 months, giving you enough room to either flip your property or get a more secure source of financing.
Most importantly typical time to funding is between 10 to 15 days for hard money loans and 15 to 45 days for bridge loans. Which means that you will always have time on your side; which is your most valuable asset in real estate.
Learn more about Gold Card Capital today. Please call for any free analysis/consultation on 1-855-479-9380 or send an email to m_adelberg@goldcardcapital.com.