Attention Commercial Real Estate Investors:
Are you in need of multifamily financing for your multifamily properties? ICP Financial specializes in all types of multifamily financing programs.
Simple complete the commercial mortgage financing application and a ICP Financial loan specialist will contact you right away.
Multifamily Financing- 5 Reasons to Invest In Multifamily Properties
When it comes to your real estate investing business one of the best prospects are multifamily income properties.
In order to purchase a multifamily commercial property you’ll need multifamily financing to get started.
And the good news is, it’s a lot easier to find multifamily financing then you might think.
A multi-family property is defined as a two, three or four unit property.
Properties with five or more units are considered commercial properties, and as such require commercial multifamily financing.
Funding has dried up when it comes to single family and small apartments (1-4 units) but if you are looking to make an investment in real estate the larger multifamily projects are not just wide open but a great opportunity.
When President Obama said there is no money for speculators he meant it.
There is simply no money available for residential non owner occupied properties.
In other words if you are hoping to find a state income loan, forget it those loans are no longer available.
If real estate investing is what you want to do there is a light at the end of the tunnel, because multifamily financing is easier to get approved for.
Uncle Sam may no longer be helping out with funding for single family and small(1-4 unit) multi-family units but multifamily financing is still there for and plentiful for larger commercial properties.
One advantage to investing in a multifamily apartment community is you do not have to personally qualify for the loan, the property itself qualifies for multifamily financing.
Anyone who has ever tried to qualify for a loan for a single family or smaller multifamily residential loan knows that you have to personally qualify for the loan even though the rents from the apartments may cover the entire amount of the mortgage.
The lender will only allow a small portion of that income as proof of you ability to pay.
Therefore to get the loan you will have to furnish all of your paperwork such as tax returns, proof of the funds for the down payment, personal financial statements and everything else.
With a commercial property however that is not the case.
The property itself qualifies for the loan not you.
Another great reason to invest in a multi-family property is the fact that most large multifamily financing loans are assumable.
Have you ever tried to assume a loan for a small multifamily or residential property?
It is impossible to get one without qualifying for it.
The criteria to qualify for an assumable is the same as qualifying for a new loan.
You will have to go through the whole process and paperwork to get the loan.
Not so with a large multi-family property. Because the property qualifies and not the investor a large multifamily property is fully assumable.
You can even get multifamily financing on a 100 unit complex with no verification of funds, no credit report on paperwork at all.
Advantage number three is the big one, you are not personally responsible for repayment of the loan when it comes to large multifamily financing.
Loans for large mutifamily commercial properties are generally non-recourse loans.
The property itself and its ability to generate income is responsible for the repayment of the loan.
When it comes to a multifamily property you have built in cash flow.
Single family and small residential properties are not meant as cash flow units.
These are meant for the owner to occupy them. Large multi-family commercial properties are built for one reason only, to generate a positive cash flow.
Last but not least, a professional management company takes care of the property for you.
Anyone who owns residential real estate knows what it is like to be called from your bed in the middle of the night to deal with an overflowing toilet or other problem or to have to deal with finding tenants and collecting rents.
With a large multifamily apartment complex you do not have to deal with any of that.
As a matter of fact most lenders insist that a management company takes care of the property for you.
As you can see a large multi-family commercial property is a great investment opportunity.
You do not have to personally qualify for multifamily financing as most loans are assumable, you do not have deal with tenants, and they are built specifically for cash flow.