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3 Tips for Multifamily Real Estate Investors
E very real estate investor knows that experience is the best teacher. That’s why so many investors network at events—to ask questions of people who have been there and done that. This helps investors avoid mistakes and better recognize good deals. The Lima One Capital team wanted to share some of our recent multifamily real estate financing experience, in hopes that the tips our investors learned can help you find your next multifamily real estate deal. by Andrew Shook, Lima One Capital
These deals include a variety of multifamily property types, financ- ing needs, and solutions. Despite the differences, common threads emerge that you can use to find your next multifamily opportunity. OPPORTUNITY IS EVERYWHERE Notice the variety in locations on these four deals: from a major city (Houston) to a mid-sized MSA like Akron to the home of Florida State University to a smaller MSA in Texarkana. This isn’t an accident. Our inves- tors have discovered that relative value is often found outside of the top 50 MSAs and in Class B and Class C properties. But many major commercial real estate bro- kers limit themselves to deals in Primary markets, leading to more competition in those markets and a vacuum of closing power in Sec- ondary and Tertiary markets. Lima One Capital has discovered that experienced sponsors can craft deals that win with smaller markets and workforce housing. Multifamily investors who can find the right deal in these areas will be ahead of the curve.
TIMING MATTERS Real estate deals come with a countdown, whether it’s from a competing offer or a required closing date. Investors need the certainty that their financing partner will close quickly. This is an area in which all hard money lenders are not the same. Watch out for funding limits, shifting underwriting requirements, hidden fees, and more. Make sure you have a lender who can close without delays or surprises. THE RIGHT LENDER CAN RESCUE A DEAL One of the things that our customers tell us is that Lima One Capital can close deals other lenders can’t. So when you encoun- ter agency fallout or need quick financing for some other reason, using the right lender with proven closing ability is paramount. •
Multifamily Investment Property Financing from Lima One Capital
These deals included:
• A 224-Unit Stabilized Property in Houston, Texas, with a 98% occupancy rate
Lima One Capital presents the industry-leading Multifamily loan program — perfect if you’re looking to purchase or refinance a multifamily property comprised of five or more units that are in need of value-add rehab or currently turnkey ready. Bridge Loans for Value-Add Rehab and Stabilized Properties
• A 108-Unit Student Housing Complex in Tallahassee, Florida
• A two-property, 76-unit portfo- lio in Cuyahoga Falls, Ohio, that needed a bridge loan to prepare for a Freddy Mac loan • A 61-Unit Multifamily Property in Texarkana, Texas, that used a value-add loan to finance rehab costs and the property
Multifamily Program Benefits:
• Short-Term Bridge Loans for an Agency Takeout • Lending in Primary, Secondary, and Tertiary Markets • Loans for Class A, Class B, and Class C Properties
• Fast Due Diligence and Closings • Minimums as Low as $250K • Non-Recourse Loans Available
• Value-Add Rehab • Stabilized Bridge Financing
Andrew Shook is the Head of Commercial Real Estate Lending at Lima One Capital. Learn more at limaone.com.
Learn more and apply: limaone.com/multifamily | 800.390.4212
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