If you’re an apartment building owner and need a multi-family hard money refinance loan, First Capital Trust Deeds (FCTD) may be able to provide the short-term bridge loan you need. Over the past decade, FCTD has originated numerous private loans secured by apartments, senior and assisted living, and student housing.
Below are a few examples of multi-family hard money refinance loans FCTD has originated for our real estate investor clients across the country.
The owner of a multi-family building used a hard money bridge loan at 72% LTV to get cash out for updating and renovating the property prior to listing it for sale.
FCTD secured a $2.1 million cash-out refinance for the owner of a 17-unit townhouse rental property in Portland. The loan paid off the existing debt and provided down payment funds to acquire a 100+ unit apartment building through a reverse 1031 exchange.
When bank loans mature, some investors use a short-term hard money bridge loan to quickly pay off the loan. In this case, the multi-family investor used a bridge loan to pay off the maturing loan and used cash-out proceeds to update recently vacated units.
A San Diego multi-family investor used a cash-out hard money second mortgage to renovate this property and another nearby apartment building they owned.
The long-time owner of this Ventura County apartment building used a private money bridge loan to pull cash out of the equity, renovating the building prior to listing it for sale at the market peak coming out of the COVID-19 pandemic. At the time, buyers were paying top dollar for apartment buildings using all-time low agency paper debt from Fannie Mae and Freddie Mac, to bid up sale prices of multi-family assets hitting the market.
The long-time owner of this 13-unit building refinanced into a 36-month private money loan. The borrower preferred private money since they’d be selling the building and retiring within the next three years. The owner wanted to avoid all the hoops that banks and credit unions had required in the past, and go with the path of least resistance.
Conclusion
Real estate investors will use a multi-family hard money refinance loan for numerous reasons. Some borrowers take cash out of the building's equity to renovate prior to selling. Other apartment building owners pull cash out for down payments on other investment properties. In addition, many like the fast and relatively painless approval process of hard money apartment loans compared to a bank or credit union.