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4 Things to Consider When Rehabbing or Building Senior Care Facilities

There are a lot of Baby Boomers, and they are getting older, so it’s no wonder that the need for more senior care and senior living facilities has increased significantly over the last decade. Today, more and more owners of multifamily properties are considering the building or purchasing a senior facility to the increasing housing demands of a retired population. If you are a developer or investor, here are a few of the trends you should know about so […]

Bridge Loans

When Would a Multifamily Bridge Loan Be Most Advantageous?

Here’s the the good news: you’ve found the ultimate multifamily property that you’ve been looking for.

The bad news: you don’t have the funds needed to transition ownership within the seller’s timeframe, and for whatever reason, your current financing options are limited.

Many prospective property owners in this situation have seen investment opportunities disappear because they weren’t aware of alternative financing options. But here’s some additional good news: you are not destined to miss an opportunity simply because you can’t finalize […]

Renovations

Renovations That Offer the Best ROI for A Multifamily Property

There is a tried and tested philosophy in residential real estate that goes something like this: target the worst home in the nicest neighborhood and add value through renovations.

For multifamily real estate investors, logic then begs this question: “Does this same approach apply to multifamily housing?” The answer—not too surprisingly—depends.
If you’re looking for a strong, immediate ROI on a real estate investment, you may do well to look for an older property in a desirable area that may simply […]

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What Are HUD FHA 223(f) Mortgage Loans?

HUD FHA 223(f) can be your ticket to ride and become an important financial tool in your efforts involving acquisition or refinancing of multifamily developments valued at $1 million and above.

Although you may be familiar with the Department of Housing and Urban Development (HUD), did you know that the Federal Housing Administration (FHA) provides loans designed for multifamily property owners?

HUD 223(f) Loan Basics

The short of it is, with this loan type, borrowers have the ability to get maximum leverage […]

Freddie Mac Multifamily

Understanding Freddie Mac and Fannie Mae in Multifamily Lending

If you own or are considering owning multifamily housing units, you have likely heard the names “Freddie Mac” and “Fannie Mae”, but how much do you know about these two enterprises? It’s important that you clearly understand the services they offer to ensure you get the best loans and best options for acquiring and owning rental housing.

An Overview of Freddie Mac Multifamily

Freddie Mac started as a nickname for the Federal Home Loan Mortgage Corporation (FHLMC), but in 1997 they […]

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The Outlook for Multifamily Housing in 2016

 

It is significant to note that the demand for rental housing has increased substantially since 2005, with 43 million families and individuals now living in rentals. To give that statistic context, that’s an increase of more than 26 percent in 10 years. This information comes from a Joint Center for Housing Studies at Harvard University (JCHS) report published in December of 2015.

JCHS research confirms that this increase is the largest gain on record in any 10-year period, leading to […]

avoiding-multifamily-loan-pitfalls

3 Pitfalls to Avoid When Seeking Out Multifamily Financing

“An ounce of prevention is worth a pound of cure” – Benjamin Franklin
Most buy and hold real estate investors get their start in residential markets, and this is often because they are already familiar with the mortgage products that make their investments possible. Residential mortgages can be obtained for properties with up to four units. But once investors cross the threshold to five or more units, they must obtain commercial financing.

Commercial mortgages obviously differ from residential mortgages (a topic […]

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Top 10 Things to Know About Multifamily Financing

Many of the clients I work with, who are new to commercial real estate lending, have a lot of questions about how these loans work. Because there are so many different facets to commercial multifamily loans, the purpose of this post is to introduce the 10 most important things to know about obtaining a multifamily commercial real estate loan.

Line It Up Before You Need It

Any competent loan officer and underwriting team will always do their best to expedite […]

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February 2016 Changes to HUD MAP Guide

One of the principals of our firm recently spent some time with a new director at HUD. It was very interesting to get an insiders perspective of the changes and improvements going on within HUD that will make access to their amazing multifamily loans much easier.

This is great news for multifamily investors looking to eliminate refi risk and take advantage of the incredible interest rates in today’s marketplace. A new MAP guide was released this February and here is […]

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How To Figure Out What Your Multifamily Property Is Worth

Have you ever wondered how to value your commercial multifamily property? Here’s the good news: it’s relatively easy to calculate. As long as you have good operating data on your property, you have all you need.

The value of commercial multifamily real estate (5+ units) is largely derived from an income approach appraisal based on a simple formula for valuing commercial real estate:

Current Market Value = Capitalization Rate / Net Operating Income

Your operating data should include annual NOI (Net Operating […]