Multifamily Value Add

 Multifamily Value Add 

For Multifamily Value Add, Real Estate Investors purchase rehab loans with low down payments are rare. We offer our standard low doc purchase rehab loan with as little as a 10% down payment of the purchase price up to 30 units for experienced investors. This program allows Real Estate Investors to increase the property value by improving the property and increasing rental income. Commercial Apartments are valued primarily based on cash flow. If a property owner increases rental income and reduce costs they not only make more money in the short term. The increased cash flow will instantly increases the property value. 

Multifamily Value Add and BRRRR 

The BRRRR real estate investment method is to Buy real estate and Rehab the property for at or below 70% of the After Rehab Value. Once Renovated, stabilize the property by fully Renting the property (90 days or more for properties of 5 units or more) and Refinancing based on the new After Rehab Value. This allows you to have your down payment returned and now you can Repeat the process and thus increase your portfolio even with the limited funds. This sounds great but with many programs this does not work for properties with over 4 units because conventional and typical hard money loans have underwriting criteria that hinders this investment option. Our Multifamily Value Add Purchase Rehab Loan program is made for real estate investors utilizing the BRRRR investment strategy. 

Multifamily Value Add Purchase Rehab Loan Advantages 

1. Low Down Payment: As low as 10% of the purchase price for experienced investors. This compares to 20% to 25% for conventional and most bank financing. 

1. 100% Rehab Funding: Most conventional and bank Funding options offer no rehab financing for commercial multifamily property. If you find one it is rarely 100% of the rehab budget. 

• Low Documentation Loan: The Multifamily Value Add Purchase Rehab Loan does not require income documentation of the sponsor as required by banks. 
• Reduced Ownership Seasoning: Most banks require 2 to 3 years of ownership before they will allow cash out based on the After Rehab Value of the property. This program only requires 6 months ownership for 75% Loan to Value cash out refinance based off the After Rehab Appraised Value or 4 months ownership seasoning for 70% Loan to Value. 
• More Lucrative: Commercial Multifamily properties with 5+ units are much more lucrative than 1-to-4-unit properties because the cost to purchase per unit is typically lower per unit as well as the cost to maintain. The profitability increases substantially as a real estate investor increases the number of units in a larger multifamily property. Simply put the return on investment is much better the more units you have per property. 

The Multifamily Value Add Purchase Rehab Loan is a great option for new or experienced real estate investor to build a very profitable portfolio of Multifamily properties in a brief period of time and with the least amount of money invested. Click here for the guidelines and terms of our Multifamily Value Add Purchase Rehab Loan program.  We also offer 100% financing for purchase and rehab of multifamily properties.

For more information call 888-848-3114 or email louisj@fbcfunding.com.

You can also click here to schedule a free loan consultation.