How can I finance an apartment complex!

6 Replies

Hello everyone, I’m from California and I’m looking into buying an apartment complex. Can I have some advice on how and what I can do to finance an apartment complex. I’ve been doing hard money loan to buy my other properties but would like to move on to apartments complex. Any information would be helpful, thank you in advance! 

@Marta Hernandez

There are hard money lenders/bridge lenders that will lend on multifamily properties but building relationships with local banks and credit unions is probably the best way to go. Each institution will have their own risk tolerance for different asset classes so it will take some research to find a local banks or credit unions that are interested in multifamily lending.

Hi @Marta Hernandez ,

As @Charles Carillo mentioned, local banks and credit unions can be a great option for the asset class you are focused on. They will generally offer you lower interest rates than hard money lenders, although that can sometimes come at the cost of speed/leverage.

It wouldn't hurt to give some local banks/credit unions a call, and see what options they may have for you!

Warm regards,


Marta, when you say apartment complex, I am assuming you are looking at 5+ units. Our brokerage has a lending contact that is our go to guy in the 5+ space. (We work out of CA). 

Would be more than happy to connect you guys. Just message me. 

Lets put some info out here for folks to get an idea of what buying "an apartment complex" is like - 

first you will need a commercial loan so find a commercial loan broker - your commercial agent will have some contacts 

Second you will need 25-30% cash as a down payment. You will also need enough cash reserves for 6-18 months of PI or PITI, AND you need to be able to show personal net worth equal to or greater than the loan you seek. Finally lenders want to see that you have experience in this field.

I never see the above mentioned. They are real requirements that may or may not allow a deal to move forward.  

Originally posted by @Eric David Willoughby :

@Mary M. Can you use a commercial hard money loan ?

 Not sure----- but what is your exit plan? If you want to get a "real" loan then all the above applies. 

I would  discuss with a really good broker. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you