Financing Options for Multifamily Properties

Financing Options for Multifamily Properties

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In this video, Beau and Ola Ibiwoye talk about multifamily financing. Beau shares his experience in real estate financing and mortgage advisory. They discuss different financing options for multifamily properties, including bridge financing, agency debt, and HUD debt. It's important to assess the deal, sponsorship team, and property location for financing options.

Lastly, they mention other sources of financing, such as C-PACE and SBA loans, and provide advice for apartment investors to increase their chances of getting funded for their projects.

Timestamps:

(00:36) - Ola Ibiwoye introduces the episode’s topic and guest Beau Eckstein on his show, Commercial Property Club Podcast, and shares his credentials
(01:35) - How Beau got into real estate financing and mortgage advisories
(02:01) - Beau's experience with teaching himself and learning about financing and investing
(03:53) - Figuring out how to get financing for various types of projects
(04:51) - Explanation of the nature and cycle of real estate finance, starting with a property qualification, and sponsor qualifications for agency debt
(05:56) - Taking the deal to the market and finding the right bridge fit
(06:21) - Different buckets of bridge lenders based on the loan amount and leverage
(07:49) - Finding financing w/ a local credit union for a client who didn't meet agency debt requirements
(08:37) - Assessing the deal quickly as commercial mortgage advisors and gathering necessary documents
(09:43) - Advice for investors in sourcing real estate financing; working with capital advisory firms
(10:00) - Required documents for assessing the deal
(10:35) - Explaining the bridge to agency product and the scrutiny involved
(12:21) - High-leverage bridge financing and appraisal considerations
(14:13) - Differences between Freddie Mac and Fannie Mae financing, including prepayment penalties
(15:52) - Deal-specific considerations and market characteristics
(17:10) - Benefits of credit union debt and avoiding prepayment penalties
(17:33) - Considerations for non-recourse agency debt and bad boy carve-outs
(18:35) - Various funding sources for apartment projects
(19:28) - The benefits of C Pace financing and its impact on capital raise and ROI
(21:10) - New Market tax credits, historic tax credits, and the structuring of financing packages
(21:57) – What are hard financing and its advantages, including fixed rates and long amortization periods
(21:58) - Explanation of HUD financing advantages, such as fixed-rate 35-year amortization
(23:44) - High leverage financing and use of tax credits for affordable housing projects with HUD
(24:36) - Ground-up development projects versus value-add projects in apartment investing
(26:09) - Prediction of a shift from a seller's market to a buyer's market in the multifamily space
(27:45) - The importance of being a skilled deal architect and structuring deals effectively
(28:32) - Explanation of leveraging SBA financing for business acquisitions and deal orchestration
(29:39) - Emphasis on wealth creation and the opportunities in the market
(30:07) - Advice for small-time investors, the importance of building a team, and harnessing the power of other people's money
(31:17) - Deal structuring using SBA financing for a self-storage facility acquisition
(33:08) - Becoming a skilled deal architect and problem solver for maximizing profitability
(34:27) - Best practices for apartment investors to secure funding for their projects
(35:04) - Emphasis on continuous education in underwriting skills and developing a strong team
(36:22) - Understanding market demographics and assembling a team for successful deals
(37:20) - Exploring ways to supercharge results, such as networking with experienced syndicators and raising capital as a co-GP
(38:47) - Explanation of the "stacking stone method" for gradually progressing from smaller residential properties to larger commercial deals
(39:07) - Think big and take action in the real estate business
(39:56) - Watch SBA videos at http://investorfinancing.tv/ and book a call at https://investorfinancingpodcast.com/rumble

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

💥 Thanks for watching 💥
#multifamilyinvesting #MultifamilyFinancing

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.