Bridge Loans for Multifamily Properties

Bridge Loans for Multifamily Properties may be a great option for real estate investors looking for short term funding to meet their financial goals. A bridge loan is a short-term loan that is used to finance a real estate transaction while the borrower is waiting to close on a permanent loan for looking to sell the property in less than 3 years.  Bridge loans for multifamily properties are used for a variety of purposes, including but not limited to:

• Purchasing an apartment building. Bridge loans can be used to bridge the gap between the time a borrower makes an offer on an apartment building and the time the property would qualify permanent financing closes. This can be helpful if the borrower needs to close on the property quickly, but it would take longer to qualify and close on a permanent financing funding option.
• Refinancing construction debt. Bridge loans can be used to refinance construction debt during a property’s lease-up phase. A property does not qualify for permanent financing until it is stabilized for at least 90 days. This can also be helpful if the borrower needs to lower their monthly payments while the property is still filling up with tenants. Bridge loans are generally interest only payments.
• Financing renovations or other major capital improvements. Bridge loans can be used to finance renovations or other major capital improvements at a property. This can be helpful if the borrower needs to make improvements to the property before they lease them or qualify for permanent financing.

Bridge Loans for Multifamily Properties typically have shorter terms and higher interest rates than permanent loans. However, they can be a valuable tool for borrowers who need to close on a real estate transaction quickly or who need to finance renovations or other major capital improvements and have interim financing until the property and or the sponsor would qualify for permanent financing or sell the property.

Here are some of the key features of bridge loans for multifamily properties:

• Short-term loans. Bridge loans typically have terms of one to three years.
• Higher interest rates. Bridge loans typically have higher interest rates than permanent loans.
• Less stringent lending requirements. Bridge loans may have less stringent lending requirements than permanent loans, making them easier to qualify for.
• Quick closings. Bridge loans can often close quickly, which can be helpful for borrowers who need to close on a real estate transaction quickly.

If you are considering a bridge loan for a multifamily property, it is important to carefully consider your needs and options. Bridge loans can be a valuable tool, but they are not right for every situation. You should work with a qualified lender to discuss your specific situation and determine if a bridge loan is the right choice for you.

FBC Funding offers Bridge Loans for Multifamily Properties including 2-4 unit multifamily properties and 5 or more unit multifamily properties. FBC Funding will also offer the Bridge Loan for Multifamily Properties on mixed use properties that may have a commercial  component, such as retail, office space or warehouse. For more information call 888-848-3114 or

 Click here to schedule a free loan consultation to determine if Bridge loans for Multifamily Properties   are the best option for you.

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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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