Multi Family Real Estate

Back to Real Estate Basics: What Is Multi Family Real

1. Private Money. Private money lenders aren’t just useful when acquiring single-family homes. Private lenders can be especially useful on the multifamily side of things, such as investing in multifamily apartments, and can be a great way to move forward on a development project if you don’t currently have the funds for a down payment.
2. Equity Shares. Finding an equity share investor is slightly different than working with a private money lender. With a private lender, you promise a regular return for your investor.
3. Material Sales. This isn’t always possible for every multifamily property project. Still, there are occasions when a property may contain valuable natural (or manufactured) resources that can be sold, upon purchase of a property, to help generate a down payment.
4. Hard Money. In case you’re not familiar with the term, hard money lenders (HMLs) can be described as private individuals or small organizations that lend “hard money” to a borrower based on the value of a property, not the borrower’s credit score.
5. Repair Allowance. Investors often overlook this strategy, but it can be a powerful way to generate your multifamily property down payment funds. It works this way: When you inspect a multifamily property, you’ll make a list of what repairs need to be done before the purchase occurs.
6. House Hacking. House hacking refers to renting out part of a property that you currently live in. You can essentially list a spare bedroom, loft, or shared space online as a short-term rental.
7. Real Estate Crowdfunding. Instead of raising financing from one lender, consider using crowdfunding as a way to buy a multifamily property. Crowdfunding is a way to raise money by asking a pool of investors for small amounts of capital rather than one big investment.
8. Seller Financing. Seller financing is another method commonly associated with single-family real estate, but it can also be applied to multifamily properties.

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