Achieving Success with Small Balance Multifamily Loans
Your success may well depend upon obtaining optimal financing for your multifamily properties.
Whether you are an experienced property owner or new to multifamily investing, Edgeworth Lending can provide you with the capital needed to improve your cash flow or to acquire a new property.
We originate and arrange highly competitive non-bank, private multifamily loans for smaller asset (5-100 units) multifamily sponsors, syndicators, developers and landlords.
We provide streamlined multifamily loans from $150k to $5 million.
Small Balance Multifamily Loans
Small deals matter. We know through experience that investors can profit by playing “small ball” with smaller multifamily properties.
As rents have risen in many markets, multifamily operators (and their residents) have gravitated toward smaller, less-amenity-centric communities that fulfill the basic need for well-maintained, no-frills apartments that don’t cost a lot to operate and are more affordable to rent.
Smaller multifamily apartment communities are becoming the next big thing in the multifamily segment. After years of historic run-ups in rents across the country, the demand for affordable housing has surged. With our streamlined non-bank multifamily loans, smaller operators and apartment communities can deliver affordable Class B and C communities to families, while providing just basic amenities.
Edgeworth Lending also advocates for smaller, underserved demographic areas and provides the professional and personalized treatment it deserves – with active lending in secondary and tertiary markets
MULTIFAMILY BRIDGE LOANS
Bridge loans are ideal for repositioning a property to get it where it needs to be to secure competitive permanent financing or sell the asset after the project is stabilized or certain “issues” are addressed.
Our BRIDGE LOANS are designed for certain multifamily plays, including:
• Refinance cash outs
• ReFi of maturing loan or impending balloon payment
• Holdbacks for Rehabs
• Foreclosure Purchase
• Tight Closing Deadlines
• Investor/Partner Buyouts
To qualify as a multifamily investment property, the building must have five or more units (apartments), whereas buildings with four or less units are still classified as residential 1-4 investment properties.
To real estate investors, a multifamily apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.
Having multifamily loans with highly competitive fixed- and floating-rate terms are, of course, a key part of what we offer multifamily investors; manageable 1.10 debt service coverage ratio (DSCR) in certain markets; some programs also offer a maximum of 80% loan-to-value (LTV).
Loan terms across our small balance loan programs are flexible, ranging from 12 months to 30 years, with up to 30 years amortization so loans can be tailored to meet your unique short- and long-term investment needs. Cash-out refinancing and assumable financing options provide for even greater loan customization.
Multifamily investing takes time and requires research, especially for new investors. Consequently, it is important to establish a working relationship with the right lender with the experience and ability to personally guide you through the loan process, ensuring a smooth process with a high certainty of closing.
Please complete the form below so we can call you to discuss your multifamily investment scenario: