Financial Resource

How to get funding for Multi Family Investment Properties by Tom Rothstein

Every now and then we hook the really big one, Multi Family Apartments. I recently placed a multi family unit under contract that was so beautiful in price and appearance that I almost got into a twelve round fist fight with my wife when it was time to sell it.

The reason I wanted to keep this unit was because of the monthly earning potential of the property. My wife is the type of investor that never gets attached to the property, on the other I fall in love with the really sweet deals. Multi Family units are always a wonderful discovery whenever you find one at the right price.

Lately I have noticed an increase in motivate sellers of multifamily units attempting to cash in on the recently popularity of apartment properties. An added bonus is finding units that are already occupied with tenants, which means the units come with instant cash flow. In one of my recent seminar I lectured on how to find multi units with tenets and the class turned out to be standing room only.

One of the main questions I received at this seminar was how to get funding for apartment complex investments. Many banks jumped out of the investment property market in 2005 which left many pending deal out in the cold. Only a few banks have resume lending for investment properties due to the high number foreclosed properties still sitting on the market.

Unless you can pay for your deals out of pocket, as an investor you may have to line up your own private funding. The title of my recent seminar was “How to find alternative funding for your investment properties”, this title alone caused quite a buzz within the local real estate market. My success as a real estate investor is possible because I connected with private funding that allowed me to skip over bank funding.

Now the down side to private funding is the actual cost of the loan in most cases the banks are actually cheaper, but a bird in the hand is better than in the bush. Private funding will allow you to purchase the properties now as versus waiting 4 months for a bank to decide if they are going to lend you the acquisition cost. The other down side to private funding is the quality lenders are very hard to find.

Please allow me to introduce you to The Alternative Funding Group http://www.fundyourrehab.com

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