November 13, 2023
Investing in multifamily properties is a fantastic way to increase your cash flow, create an outstanding property portfolio, and create stellar opportunities for yourself. In addition, multifamily properties are relatively low risk, which generates a more steady and predictable income, especially compared to other types of investments. However, a large portion of investing in a multifamily property is determining and configuring how you will finance and afford it. Multifamily properties are rather large properties, meaning the cost is significant. In order to help you get the multifamily investment property of your dreams, the expert team at the Multifamily Firm has compiled our top tips on how to fund your investment, giving you a better understanding of multifamily property financing.
How Can I Fund A Multifamily Investment Property?
Browse Agency Options Such As Fannie Mae Loans
Fannie Mae loans are a government-backed entity that buys mortgages and provides financing for those interested in investment properties. This loan form has various options that allow you to find the one that meets your needs well. Another agency loan, referred to as a Freddie Mac loan, is also under congressional charter, and it is a popular choice for those interested in multifamily properties. Whether you are looking for a complete loan to buy or need to refinance your property, these are fantastic options to look into.
Look Into FHA Loans
Another option is a FHA loan, also known as FHA-insured financing. FHA loans are government-insured loans that offer the most extended terms, the lowest fixed rates, and the highest leverage levels, making them extremely attractive for multifamily investors. Like agency loans, FHA loans are perfect for refinancing and purchasing; however, they are also suitable for new construction and intense renovation projects.
Get A Short Term Loan
In addition to long-term government-backed loans, there are also short-term loan options available for investors. These loans are known as bridge loans and hard money loans. These loans are perfect for investors who know and are able to pay off the loan and property at a quicker pace, as they are suitable for about six months to 3 years. These loans are also perfect for those who are waiting for an agency or FHA loan and need immediate assistance and stabilization.
In Search Of A Multifamily Property? Contact The Multifamily Firm Today!
The Multifamily Firm is a premier investment real estate brokerage exclusively focused on the disposition & acquisition of multifamily properties. Based in Sarasota and Tampa, Florida, the firm is firmly positioned at the epicenter of economic growth and activity on the West Coast of Florida. If you are looking for a multifamily property, please feel free to contact us via our contact form or by calling us directly at 941-444-6160. We look forward to speaking with you soon!