Updated almost 6 years ago on . Most recent reply
Commercial Multifamily Lending
Hi all - I own a few properties currently and am ready to scale up. For now I'm working to align the capital necessary to purchase a property at or around 20 units within the next couple of years ($1M-$2M purchase+rehab). I know there are a variety of loan options available through banks with various requirements regarding down payment, recourse, interest only payments for a certain period etc. and often dependent on the number of units in the property (i.e. single family vs. duplex vs. 5+ units). I'm curious if there are any loans I may not be aware of that become available once the property reaches a certain threshold at or around this 20 unit number? What is, in your opinion, the best loan to seek when looking to buy a property of this size? Appreciate any and all responses BP network, God Bless!
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#2 Land & New Construction Contributor
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@Wes Love Local and regional commercial banks are great for these types of deal especially if you do not have multifamily experience but they will be full recourse.
Freddie Mac has a small balance program. Non-recourse. Some first time investors can qualify if you meet other criteria. You can learn about the program on their website.