Residential real estate is not limited to the usual apartments or homes you can acquire for reselling or to occupy them. Instead, there are options that go beyond the simple house with a few rooms or the unit in a building. However, most of the time, you will need multifamily loans or specific credits for them.
In the case of multifamily loans, you use them for what the name suggests: purchase this type of property. However, what is a multifamily property? Is it different from the regular buildings or homes? Not at all since it is rather the same. The difference lies in what you are acquiring or purchasing in specific.
Instead of financing a unit, apartment, or home, you will be purchasing an entire structure or property with 2 or more units that can be used by several people or families. A very common example is those buildings that only have one or two apartments per floor and only consist of a maximum of 4 to 6 floors. In other words, you will have the entire building with more than one unit.
That being said, why would you be interested as a real estate investor in purchasing one of these multifamily properties? Because you might be looking for a passive income. It is common for owners of these properties to rent most of the units if not all of them to repay the loan they requested to finance the acquisition and even have an income from this. Therefore, you can look at this as a long-term investment more than a short one since it is not about buying, renovating, and reselling like usual real estate properties. It is possible to go for the usual process, but it tends to be more worth it when you rent the units and even live in one of them to avoid any expenses in another place or home.
How are multifamily loans involved?
For the purchase of any of these properties, the specific loan that covers as much as possible of the total cost is crucial. Regular residential real estate loans will not offer you enough funds nor good conditions that adjust to the acquisition of these properties. On the other hand, multifamily loans are perfect in LTV ratio, interest rates, time for repayment, and other terms since they are adjusted to the type of real estate property and its cost.
At Commercial Real Estate Loan Pros of Jacksonville, we can offer you different options of this same loan so you are able to buy multifamily properties with 2 or more units. Most lending institutions and companies that have this credit option available are limited to properties with a specific number of units since the funds they can offer are limited to an average cost. However, we can help you regardless of the number of units and your future plans for the property: if you want to renovate and resell it, or use it as a passive income or for yourself.
Therefore, make sure to let us know if you are interested in applying for one. Before doing so, you are welcome to ask all your questions to any worker and professionals in our company, Commercial Real Estate Loan Pros of Jacksonville. We will make sure that you are clear about everything and confident before requesting the loan.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.