Updated over 8 years ago on . Most recent reply
Raising Private Money
Hello everyone! I'm new to Bigger Pockets and I'd like to introduce myself. I'm a property manager in the Central Valley and a small time investor. I've done a few flips and would like to get in to long term multifamily holds. I'm trying to raise funds by either private money or longer termed hard money. I've used hard money in the past and love the convenience of it, but I'm not in love with the terms. I currently pay 4-6 points and 8-12% on the money. I've reached out to a web-based crowed funder that will loan us money, but not in rural areas. Being in the Central Valley, this might limit my deals. Looking for some advice from the community or investors that might be interested! Thanks!
Most Popular Reply
Hi Jordan, congrats on making to move to multifamily!
Freddie Mac has a Small Balance Apartment Loan program. Link below has the general terms, and your rates, loan terms and LTV's will be MUCH better that hard money.
http://www.freddiemac.com/multifamily/product/pdf/...
They will lend nationwide. They work though loan originators. The markets are tiered and Modesto is considered a "Small Market" which affects some of your available terms. Download the "45 MSAs [xlsx] on the link below to verify Modesto's market tier status.
http://www.freddiemac.com/multifamily/news/2016/20...
Hope this helps!
Best regards,
Sean