Hard Money Loans for Multifamily Property & Apartment Buildings

Multifamily & Apartment Building Financing with Hard Money Loans

Wave Private Money is a direct hard money loan broker based in San Diego, California, with over 20 years of experience providing real estate investors with hard money loans for multifamily property and apartment buildings, including duplex, triplex, fourplex, and other multiplex properties. Offering fast approvals, funding, competitive rates, and reliable service for multi-family loan financing, Wave Private Money has become one of the nation's top hard money multi-family loan brokers.

Hard Money Loans for Multifamily – Private Lenders for Multifamily  

Wave Private Money is an asset-based broker primarily concerned with the value of the property and the borrowers’ down payment (or equity in an owned property). The focus on value and borrower’s equity allows for providing fast approvals and funding to real estate investors. It also allows for overlooking potential blemishes on a borrower’s record, such as bad credit, foreclosures, short sales, bankruptcies, and loan modifications.  

Hard money loans are available for various types of multifamily property, including:

- Duplex
- Triplex
- Fourplex (4plex)
- Larger multiplex properties
- Apartment buildings

Hard Money Loans for Apartment Buildings

Hard money loans for apartment buildings are typically for short terms of 1-2 years. Real estate investors usually use hard money loans for apartment buildings when the specific property needs to be acquired immediately, and there isn’t time for the conventional lender to approve and fund a purchase loan. Hard money brokers like Wave Private Money can quickly agree and support loan requests. Once the apartment building has been secured with the hard money loan, the investor can begin the longer refinancing process into a long-term permanent loan.

Real estate investors who own an apartment building with an existing loan and sufficient equity may decide to take out a hard money 2nd loan against the property. The loan proceeds may be used to make upgrades or repairs to the apartment or to reinvest in another opportunity elsewhere.

Apartment Loan and Financing Rates

Hard money apartment loan rates are currently 10-12% for a 1st mortgage. The hard money interest rates are higher due to the short-term nature of this type of financing and the additional risk involved for the lender. Apartment financing rates from traditional lenders should be considerably lower than hard money rates.

Hard Money Financing for Duplex, Triplex, Fourplex, or other Multiplex Property

Duplex, triplex, fourplex, or other multiplex properties are popular investment vehicles for real estate investors. The right multifamily property can provide attractive returns through cash flow and appreciation. Investors use hard money financing to acquire a multifamily property for various reasons.

In many situations, a real estate investor doesn’t have time to wait for bank approval and funding. An opportunity may arise requiring a short escrow period and rapid financing to secure the property. Waiting for a bank loan would likely result in another investor purchasing the property, as the bank approval and funding process can take over 30-45 days. A hard money lender can approve and fund a hard money multifamily property loan within a week if needed. Once the real estate investor has purchased the multifamily property with a hard money loan, they can explore long-term financing with lower interest rates.

Banks and conventional lenders are often known for their strict and arbitrary lending criteria. This may result in a real estate investor having their multifamily property loan request denied. Multifamily hard money lenders have much more flexibility in getting a loan funded. Hard money lenders can also overlook poor credit and other issues on an investor’s record that would cause a bank to deny a loan request.

Multifamily Loan Rates

Multifamily loan rates from hard money lenders are typically higher than what is available from long-term conventional lenders. Expect rates in the 10-12% range depending on the loan-to-value ratio (LTV), borrower strength, property, lender, and other criteria. While hard money loan rates are higher than conventional multifamily loan rates, hard money requires much less documentation, and the approvals and funding can be completed quickly. Multifamily hard money loans are typically for short terms of 1-3 years.

Owner-Occupied Multifamily Hard Money Loans

In some situations, a real estate investor wishes to purchase a multi-unit property (such as a duplex, fourplex, or giant multiplex) and live in one unit while renting out the other unit(s). Obtaining financing for this type of scenario may be challenging as it is outside the standard criteria for most lenders.

Wave Private Money has the lender network and expertise to provide hard money financing to real estate investors who intend to occupy a unit within the property.