Hard Money Loans for Multifamily Property & Apartment Buildings

North Coast Financial is a California direct hard money lender (private money lender) providing hard money loans for multifamily property and apartment buildings including duplex, triplex, fourplex, other multiplex property. The broker/owner of North Coast Financial has over 40 years of hard money lending experience and has funded more than $800 million in hard money loans. We provide fast approvals and funding, competitive rates and fees and excellent customer service. Loan applications can be approved the same day they are received and multifamily hard money loans can be funded in as few as 5-7 days.

Multifamily & Apartment Building Financing throughout California

North Coast Financial provides multifamily and apartment building hard money financing in San Diego, Los Angeles, Orange County, San Diego, San Francisco Bay Area, Sacramento, Riverside, Ventura, San Bernardino, San Jose and various other areas and counties in California. Contact North Coast Financial now to inquire about a multifamily hard money loan.

North Coast Financial are asset-based lenders who are primarily concerned with value of the property and the borrowers’ down payment (or equity in an owned property). The focus on value and borrower’s equity allows for providing fast approvals and funding to real estate investors. It also allows for overlooking of potential blemishes on a borrower’s record such as bad credit, foreclosures, short sales, bankruptcies and loan modifications.

Hard money loans are available for various types of multifamily property including:

• Duplex
• Triplex
• Fourplex (4plex)
• Larger multiplex properties
• Apartment buildings

Hard Money Loans for Apartment Buildings

Hard money loans for apartment building are typically for short terms of 1-2 years. Real estate investors typically use hard money loans for apartment buildings in situations where the specific property needs to be acquired immediately and there isn’t time for the conventional lender to approve and fund a purchase loan. Hard money lenders such as North Coast Financial are able to approve and fund loan requests very quickly. Once the apartment building has been secured with the hard money loan the investor can begin the longer process of refinancing into a long-term permanent type of loan.

Real estate investors who already own an apartment building with an existing loan and sufficient equity may decide to take out a hard money 2nd loan against the property. The loan proceeds may be used to make upgrades or repairs to the apartment or to reinvest in another opportunity elsewhere.

Apartment Loan Rates for California – Apartment Financing Rates

Hard money apartment loan rates for California is currently in the range of 10-12% for a 1st mortgage. The hard money interest rates are higher due to the short-term nature of this type of financing and the additional risk involved for the lender. Apartment financing rates available from traditional lenders should be considerably lower than hard money rates.

Hard Money Financing for Duplex, Triplex, Fourplex or other Multiplex Property

Duplex, triplex, fourplex or other multiplex properties are a popular investment vehicle for real estate investors. The right multifamily property can provide attractive returns in the form of cash flow as well as appreciation. Investors choose to use hard money financing for the acquisition of a multifamily property for various reasons.

In many situations a real estate investor doesn’t have time to wait for bank approval and funding. An opportunity may arise that requires a short escrow period and rapid financing in order to secure the property. Waiting for a bank loan would likely result in the property being purchased by another investor as the bank approval and funding process can take over 30-45 days. A hard money lender can approval and fund a hard money multifamily property loan within a week if needed. Once the real estate investor has purchased the multifamily property with a hard money loan they then have the time to explore long-term financing with lower interest rates.

Banks and conventional lenders are often known for their strict and arbitrary lending criteria. This may result in a real estate investor having their multifamily property loan request denied. Multifamily hard money lenders have much more flexibility to get a loan funded. Hard money lenders are also able to overlook poor credit and other issues on an investor’s record that would cause a bank to deny a loan request.

Multifamily Loan Rates

Multifamily loan rates from hard money lenders are typically higher than what is available from long-term conventional lenders. Expect rates in the range of 10-12% depending on the loan to value ratio (LTV), strength of the borrower, property, lender and various other criteria.

While hard money loan rates are higher than conventional multifamily loan rates, hard money require much less documentation and the approvals and funding can be completed in a fraction of time. Multifamily hard money loans are typically for short terms of 1-3 years.

Owner Occupied Multifamily Hard Money Loans

In some situations, a real estate investor wishes to purchase a multi unit property (such as a duplex, fourplex or larger multiplex) and live in one unit while renting out the other unit(s). Obtaining financing for this type of scenario may be challenging as it is outside the normal criteria for the majority of lenders.

North Coast Financial has the necessary licensing and expertise to provide hard money financing to real estate investors who intend to occupy a unit within the property.