I am an individual and looking to invest in a 4-10 multifamily building. What types of loans would work?

In Buying Property - Asked by Mark T. - May 30, 2011
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Answer(s)

Rob B.
Chandler, AZ

Mark...
Keep your investment in the 4 or less range and you will be able to utilize single-family housing rates for your loan.
Over four units and up to the 10 you have suggested, work with a good local bank for some of your better rates. Also, utilize a good mortgage broker who knows what he or she is doing and you won't go wrong. Often, the bank will pay the mortgage broker's commission.
Onward and upward Mark ...

May 31, 2011
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William C.
Broker/Agent
Pasadena, CA

Hi Mark,
As Rob pointed out; 1 - 4 units are treated differently that 5+. All lenders are extremely cautious today, but the rates on 1-4 units are generally better, but the loan qualifications are primarily based on the borrowers income. With 5+ units, the rates are a little higher and generally adjustable rate loans, but the income of the building is the primary source the banks use to qualify the property for loans.
Good luck.

Jun 6, 2011
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David C.
Lender/Mortgage Broker
Newark, NJ

Hi Mark,
There's a way to get low interest rate no-doc loans using private investors. Depending on the size of the loan that you need, interest rates can be as low as 1.6%.
For more information: http://newprivatelenders.com
Best regards,

Jun 6, 2011
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