Long Beach Multifamily Lending Products

4 Replies

Hi all. As multifamily investors here in SoCal we've been recently inspired by episode 288 of the podcast to start looking around for better lending products in the area. The guests on that podcast had mentioned they've found a local credit union who offers tri/fourplex loans at 90% LTV.

Perhaps we won't be so lucky here in the Long Beach area, but I'm curious if anyone happens to know any local lenders who have offerings better than the standard 75% LTV? Thanks!

Hi @Christopher L. ,

You are right there are lenders that will do 90% LTV on triplex/fourplex loans in Long Beach but it will have to be an owner occupied property. If it's an investment property (one you aren't planning to live in) then they will likely require you to put at least 25% down.

I happened to talk to a mortgage broker this morning about this exact situation. I haven't used him before but here's his info in case you'd like to reach out to him: Ubaldo Leon with RPM Mortgage 3109275369. 

@Christopher L. , there are bridge lenders that will lend up to 90% on 2-4 units, plus 70-100% of the rehab costs in Long Beach/Los Angeles. These are for value-add deals though, so the interest rates are 8.5% - 10%. 1-2 points origination. 

I've used a similar loan on a 6-unit in Long Beach, but it's only to turn it around and then refinance into conventional financing. 

Basically it allows you to get into a property for 15-25% of the ARV once you go through the rehab and refinance.

@Christopher L.

Never heard of tri/fourplex loans at 90% LTV unless it's primary residence with 3.5% down.  

Would you mind sharing the name of the  credit union so we can add it to our lender portfolio?

Originally posted by @Jim Blackburn :

@Christopher L.

Never heard of tri/fourplex loans at 90% LTV unless it's primary residence with 3.5% down.  

Would you mind sharing the name of the  credit union so we can add it to our lender portfolio?

 I don't believe they named the actual credit union on the podcast so unfortunately I can't be of much help with this.