We make financing for apartment buildings easy.
Offering financing for apartment buildings, otherwise known as multi-family properties, is an excellent strategy for brokers to expand their business offering and client base. To qualify as a multi-family investment property, the building must have five or more dwellings or apartments.
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 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 you may need to provide a larger down payment.
Flexible Solutions for Financing Multi-Family Buildings.
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.
A FlexPerm loan is great option for multi-family property investors since it offers:
- A simple financing solution on a purchase or cash-out refinance.
- A 3-year or 8-year fixed term amortized over 30 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.