Before you purchase your first multifamily, you should ask yourself 3 questions to determine what type of loan you can qualify for:
Let’s take these questions one by one.
1. Is the property stabilized (yield play) or distressed (value play)?
Stabilized property characteristics:
Distressed property characteristics:
2. What is your multifamily ownership experience?
3. What is your net worth and liquidity?
Net worth must be equal to or greater than the loan amount.
Liquidity must be a minimum of 10% of the loan amount in cash or marketable securities not including the down payment.
Assuming you meet the net worth and liquidity requirements:
Typical Non-Recourse Loans terms:
Typical Recourse Loans terms:
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