Multi-Family Hard-Money and Commercial Loans: Things to Know

As a real estate investor, you might not be sure if you want to invest in a single or multi-family investment opportunity. Both investments have pros and cons, and you should carefully consider them before making an investment.

• Single family investment

Single family investment can generate higher cash flow as compared to multifamily investment opportunity. In addition to this, these investments are easier to acquire and rent for a good price. Average rent for a single family investment ranges from $400-$600 a month. Purchasing a single family investment is easier and more affordable than purchasing multi-unit buildings.

• Multi-family investment

When you decide to purchase a 20 unit building in multifamily investment, you only have to apply for one loan. You have to apply to 20 separate loans for single family units. Similarly, you only need one insurance policy for multifamily investment, which is easier to manage than multiple insurance policies in single family investment opportunities. Real estate investors who are interested in purchasing multifamily buildings are less as compared to those looking for single family homes for their family. Return on investment can be easily increased by adding a small amount to each unit’s rent.

Multi-family hard money loan

Whether you are a landlord who is interested in investing in rental property or a real estate builder who is looking to carry out some construction work, hard money finances from reputed multi-family hard money lenders are the best way to go.

Benefits of hard money loans for multifamily investment

1. Fast approval:

Due to the immense paperwork and long standard approval processing times, some of the traditional loans are very hard to get from trustworthy commercial loan brokers and lenders. The borrowers will be hard-pressed to get the loans within a certain amount of time. With hard money finances, you can close the deal much more quickly. Some real estate investors even had closed their deal with the lender within as little as 24 hours. The process can move even more quickly once you have developed a relationship with a lender. This allows you to turn your residential or commercial properties around and make a faster profit.

2. Flexibility:

Hard money lenders are able to evaluate each deal individually because they don’t use a complicated standardized loan approval processes. Depending on their current situation and relationship with the lender, borrowers may have more wiggle room.

3. More collateral options:

Lenders are investing in the value of the residential property themselves and often do not invest on the individual credit of the borrower. Due to this, hard money lenders accept different types of collateral as long as the borrowers can render profitable collateral for securing the loan. Borrowers present the lenders with solid plans for the residential or commercial property, to give them a better understanding of what they are working with.

If you are seeking a multi-family investment opportunity but have insufficient finance then get in touch with “Park West Capital”. Based on their experience and domain’s expertise, they can assist you in finding best possible multi-family loans from reliable hard money lenders to grow your portfolio.

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Created on Sep 25th 2017 00:32. Viewed 737 times.

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