This article provides tips and ideas for financing your multifamily investment. A few weeks ago I wrote about the pros and cons of investing in multifamily properties. If you missed it, view the article here.
Back to financing for multifamily investment properties. The type of financing available for multifamily investment properties will depend, at least in part, on the size of your property. Conventional lenders classify multifamily properties as residential or commercial. The classification depends on the number of units. It is important to understand the distinction because the type of financing available and the requirements to get approved differ between the two types of properties. In general, financing sources for multifamily include all of the sources you have for single-family, as well as others available only for multifamily.
In the full article I first look at conventional loan options. Next I review less traditional and more creative ways to finance the purchase of a multifamily property. Here are a few highlights;
Residential Multifamily. If one of the units will be owner-occupied, more financing options become available.
Commercial Multifamily. Financing this category of property usually requires a larger down payment and shorter repayment schedules versus residential multifamily.
Beyond Conventional Financing. If you look beyond conventional you will find several financing options for multifamily properties. These include;
- Equity Share Investor
- Real Estate Syndication
- Private Money Lenders
- Portfolio Loan
Our Multi-family loans are intended to provide Minnesota borrowers with short-term financing for constructing or rehabbing non-owner occupied investment projects. Check out our multi-family loan programs.