Rand Captial provides our community with a variety of financing solutions specifically designed for acquiring Multifamily Commerical Real Estate.
Fannie Mae/Freddie Mac are number one in lending when it comes to multi-family. They offer relatively high levels of leverage, low interest rates and certainty of execution to a broad range of borrowers.
While the agency lenders typically have the lowest rates available in the market, many times the investor would be better off obtaining a multi-family loan from a traditional bank. In certain instances, a traditional bank will better serve the needs of the investor by providing more flexible underwriting and loan terms.
Another source of capital for multi-family loans are commercial mortgage-backed securities marketed through Wall Street investment banks. CMBS lenders make individual loans to investors which are then packaged and sold as securities. In certain market cycles they will provide rates and terms that are competitive with Agency Lenders.
Very often, a property does not qualify for traditional lender programs for various reasons including: vacant properties, properties with un-stabilized occupancy, properties in need of major repair or remodeling, properties that do not cash flow or are underperforming, or loans that must close with a very quick timeline. The best solution in these cases is a bridge loan. Bridge loans are short-term loans that allow the investor the time and capital to reposition a property in order to qualify for traditional bank loans in the future.