Multi-Family Hard-Money and Commercial Loans: Things to Knowby Stacey Galvin consultant
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
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.
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
Multi-family hard money loan
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
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.
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.
More collateral options:
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.
Created on Sep 25th 2017 00:32. Viewed 603 times.