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.

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Apartment Fix and Flip Loans

Low down payment high after rehab value programs are available to fix and flip apartment buildings. With the stock of apartment buildings old and limited with a high demand for good rental units, now is the time to invest in multifamily buildings. This is a great market to renovate and add value to apartment homes and make a great return. Real Estate Investors who want a great return on fix and flip should consider apartment buildings.

Apartment Fix and Flip Loan Guidelines

We offer multiple apartment fix and flip loan programs. I will present guidelines on three options.

85/85 Apartment Fix and Flip Loan:

• Loan To Value:    85% loan to cost. Loan to cost equals the purchase price plus the renovation costs. May qualify for 100% of renovation costs for minor value added improvements.
• Loan Amount:   $250,000 to $5,000,000
• Term: Negotiable between 6 months and 2 years. Term affects rate and points.
• Credit Score:   No minimum credit score, credit profile important. No recent bankruptcies, foreclosures or mortgage late payments acceptable. Open judgments must be paid.
• Debt Ratios:   No Debt Ratios are calculated. But borrower must show the ability to repay the loan. We will consider cash flow and or cash reserves. This means if there is no income but adequate cash reserves borrower will qualify for funding.
• Cash Reserve:   At least 15% of loan to cost must be available for reserves after closing.
• Rate: 8.5% to 17% with 2 to 4 points.
• Character: The complete file is reviewed including borrowers experience, property and property location.
• Nationwide Lender

80 /80 Apartment Fix and Flip Loan and Credit Line

• Loan to Value: Up to 80% of Purchase Price and 80% of Renovation Cost Credit line qualifies for better terms.
• Loan Amount: $100,000 to $3,000,000
• Term:  12 months
• Credit Score: 620 minimum
• Debt Ratios: None Calculated
• Cash Reserves: Minimum liquid funds are $50,000
• Rate: 7% to 11% with 2 to 4 points
• Character: Experience, Cash Reserves, Net Worth and credit determines rate, points and LTV
• Nationwide Lender: will lend in 38 states

70 / 100 Apartment Fix and Flip Loan

• Loan to Value: Up to 70% of purchase price and 100% of the renovation costs
• Loan Amount: $250,000 to $2,000,000
• Term:   12 months
• Credit Score:  600 minimum
• Cash reserve: 6 months
• Rate: 12% to 14%   3 to 5 points
• Character: Experience Mandatory no first time investors
• Nationwide Lender

Call today for more information 888-407-6953

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