Best Multi-Family Purchase Money Bridge Loans

This blog post features some of the best multi-family purchase money bridge loans that First Capital Trust Deeds (FCTD) has originated over the past few years for our real estate investor clients. Each borrower used hard money or private money funds to quickly close on the property, then either renovated, stabilized or refinanced into a Fannie Mae ("Fannie”) or Freddie Mac (“Freddie”) CMBS agency paper loan. Or, they renovated, stabilized and resold the property in a fix-and-flip transaction.

Reverse 1031 Exchange — $8.2 million Private Money Bridge Loan

A multi-family apartment building investor in Washington state used a private money bridge loan to complete a reverse 1030 exchange. In a reverse exchange, the investor acquires the exchange property before selling their existing property. Borrowers can use a private money loan to either pull money out of the vacating property in second position, or use both properties as security for a cross-collateralized blanket loan. When the investor sold the exchanging property, they refinanced into a long-term agency paper loan.

1st & 2nd Hard Money Combo Hard Money to 80% CLTV

An experienced San Diego apartment investor used a first ($1.05 million) and second ($150,000) hard money combo loan with up to 80% combined Loan-To-Value (CLTV) to purchase an apartment building in need of a cosmetic overhaul. The 12-month bridge loan provided time to renovate the building, lease all units, and secure long-term financing.

COVID-19 Apartment Building Fix-and-Flip Financing

Los Angeles investors used a 75% LTV hard money fix-and-flip loan to acquire this multi-family property at the outset of the COVID-19 pandemic. Even though much of the economy had ground to a halt, FCTD’s lenders were operational and able to provide capital to buyers when other lenders, like debt funds and conventional lenders, were on standby.

$1 Million South Carolina Apartment Building Bridge Loan

A multi-family investment partnership acquired a 56-unit apartment building in South Carolina using a $1 million hard money bridge loan. The buyers used an 18-month bridge loan to make major renovations, allowing them to balance expiring leases and renovations to vacant units.

45% LTV Apartment Bridge Loan in the Bay Area

These Bay Area buyers used a low-leverage hard money bridge loan to quickly acquire a 15-unit apartment building before refinancing into a long-term agency paper loan.

11-Unit Purchase Using Hard Money Bridge Loan in San Diego

Experienced investors used a 12-month hard money bridge loan to acquire an 11-unit apartment building in San Diego that needed an overhaul. FCTD secured the short-term financing that allowed the buyers to close quickly and renovate post-close. Their exit strategy was to refinance into a Fannie Mae long-term loan.

Conclusion

In addition to multi-family purchase money bridge loans, FCTD also originates numerous refinance loans secured by apartment buildings. Hard money capital can be a fast and flexible option to fund multi-family units. Whatever the financing challenge, FCTD works with a host of lenders ready to help you seize your next real estate opportunity with the right funding solution.