What is a multi-family hard money loan?
Multi-family loans are a great tool for new real estate investors as well as seasoned professionals. Multi-family properties consist of four to five or more separate family dwellings. These properties have a higher upfront cost, but provide a greater investment opportunity as the amount paid in rent typically far exceeds the costs.
Advantages of a multi-family hard money loan
Multi-family loans offer a great investment opportunity as they help investors develop a large portfolio of rental properties. Beyond that, it is more efficient to acquire a large multi-family property than to acquire several single-family properties. This allows you to work with one seller and acquire one loan, rather than working with a variety of different sellers and acquiring a variety of different loans. On top of that, multi-family properties generate healthy cash flow each month, even if there are vacancies or tenants that are late on their monthly payments. In comparison, a single-family property would generate no cash flow if unoccupied or if the tenant is late on their monthly payments.
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