Private Money Lender & Multifamily Refinancing (Questions)
Let's say you use a private money lender, so you pay cash for a multifamily property and the rehab costs. Is it more difficult to cash-out refinance after you raise the value of the home compared to an HML or traditional loan?
I understand multifamily's value is appraised NOI/CAP=ARV compared to how "nice" a single-family home is correlated to its comps. Besides how the property is appraised, what are the differences between qualifying for multifamily refinance compared to a single-family refinance?
Most Popular Reply
@Mike Dusenka what size property are you talking about? If it’s less than $1M you will likely use a local community bank for financing. Commercial loans are easier to deal with versus residential but you are still dealing with a bank. Using hard money lenders might be a bit more straightforward but it all depends on who you work with.