Financing a Multifamily Property (Duplex, Triplex, Fourplex): Everything You Need to Know!
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- Опубликовано: 16 июн 2024
- Want to start investing in multifamily real estate by financing a property but feel confused? This video covers everything you need to know when it comes to financing a duplex, triplex, or fourplex in 2022.
0:00 - Introduction to Financing Multifamily Properties
1:49 - How to prepare before speaking with a mortgage broker
2:58 - How much does it cost to qualify for a mortgage loan?
3:39 - What do I need to provide for income verification?
4:12 - How long does it take to get pre-approved for a mortgage loan?
4:30 - What is the difference between pre-qualification and pre-approval?
5:27 - How much down payment is needed for a multifamily property?
5:52 - Is it possible to buy a fourplex with less than 25% down payment?
6:45 - What is the difference between owner-occupied interest rate and investment interest rate?
7:55 - How do interest rates affect my mortgage payment?
8:35 - Interest Rates in 2022
9:14 - Is it possible to buy multifamily properties with other people?
10:56 - How does my credit score impact my mortgage loan?
11:58 - Does income from other units factor into income qualification?
12:48 - Buying Properties with Zero Down Payment Through VA Loans
15:54 - New 2022 Updates on Multifamily Mortgage Loans
16:39 - What is the difference between various loan providers?
18:21 - Is it necessary to work with a mortgage broker?
19:38 - What are the benefits of working with a mortgage broker?
20:20 - How is Fannie Mae and Freddie Mac relevant to mortgage loans?
21:28 - What are the other non-conventional financing options?
23:24 - What is a hard money lender?
26:21 - What is a private party loan?
29:15 - What is a seller carry-back note?
31:33 - How many mortgage loans can an individual have?
32:28 - Why is a conventional mortgage loan the best option?
34:33 - What is the maximum loan limit someone can borrow?
35:24 - Is it still a good time to refinance my property in 2022?
39:46 - Can I qualify for a mortgage using other investment income?
40:55 - Conclusion and Final Takeaways
#RealEstateInvesting
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Juan is a Licensed California Real Estate Broker that has acquired his Certified Commercial Investment Member (CCIM) designation and a Real Estate Investor who is dedicated to helping people build wealth and financial independence through real estate investing.
Juan specializes in selling multifamily apartment units as well as residential properties. He prides himself in locating value-added properties that maximize the client’s investment yields. Juan is a detail-oriented entrepreneur.
Today he handles everything from finding, funding, designing, managing, and selling investment properties. His diverse experience in commercial and multifamily real estate allows him to develop and navigate a wide range of projects.
BRE 01417642
www.SageREGroup.com
Follow me on social media:
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LinkedIn: / juanhuizar-sagerealestate
Thanks for watching! If you have more questions, we prepared this blog with even more info covering as much as we could on financing multifamily properties: geni.us/LeYgd
Great video! My first investment was Multifamily and next was self storage and I was off to the races! 🎉
This is a great video. You answered every single question I had. Thanks!!
This video is underated. Almost all of my questions were answered.
This was such a great video! Thank you so much 😊
Excellent video, Juan & Phoebe. Thank you for the great content and helpful info. 👍
Thank you for the feedback Elizabeth! Our #1 goal is to always provide value. We are glad to hear that you liked it.
Thank you so much for such valuable information, you all have answered many of my questions!!!
We are slo glad to hear this Nellie! Please let us know what other topics would be helpful to you!
Great information.thank you
SO HELPFUL!!!
Love the time stamps!
Thank you Randy
Thanks for the video. Super informative 👌
Thanks Clint 👊🏽
Great video!! Investing in multifamily changed my life. Now I show people how I did it. Such a great way to plan for retirement.
damn this is crazy I wish I researched this before, great content thank you!
Great video. Thank you!
Glad you liked it!
Thank you for the update. Speaker focused on many LOW points of qualifications.
great video 👍🏼
Thank you! 👍
Great video.
Great Video... Partnership Loan/Unconventional Loan/1% Interest Gap doesn't matter.
Great video. Thank you both! I'm interested in a fourplex & storage facilities.
Reach out to our team and we'd love to assist you.
The best thank you so much for all your video and helpful information just Gained yourself another subscriber
Awesome, thank you!
Thanks for sharing
Thanks for watching!
🤯🤯🤯🤯🤯🤯🤯🤯 needed this 📝
Thank you and wishing you the best!
The seller carry financing is an interesting topic. Maybe a full video on the alone? Thanks!
Great idea Al. We will see more seller carried notes as interest rates continue to rise. Thank you !
Great video
Thanks for the visit and your comments.
VA Loans no longer follow the county loan limits as of 2020 unless you're using entitlement again while keeping another home on a VA Loan
Great video and explanations!
I currently live in Arizona, I'm a realtor & investor out here with 45 multi-family units Phoenix Metro Market. I'm looking to take use FHA or my VA home loan to purchase out here in San Diego County a 2-4 unit property.
That would be great if you guys went over property taxes, property insurance and even some of the Airbnb rules and regulations in San Diego County
Reach out to us. We have you covered.
Very interesting topic. Watched the whole thing.Thanks for bringing a mortgage professional on the channel. She seems very neutral about going with an online lender while others will preach how going with like a quicken you're dealing with new licensees who don't know how to properly counsel buyers nor help you win a bidding war. What are your thoughts on online lenders as an agent representing buyers and sellers?
Al, i'm OK with an online lender if that is where you can secure the best interest-rate. For me personally I like to know who the lender is because at the end of the day it's still a relationship business.
I currently own 3 houses, all on a VA loan. You can buy a house with a VA loan and then another house 2 years later as long as you still have benefits. Have just one is incorrect.
I love the content and teaching style. I have a question, if I’m looking to invest out of state, should I use a lender in the state I’m investing in or what matters is where ever I get the best terms ?
I hope this question is answered. I have the same question
I purchased investment property in Nashville, and I live in Los Angeles - it was a 103 exchange.
I got an agent in Nashville and he has a lender in Nashville for my next purchase. I’m going to do the mid term rentals
In the process of house searching for a multi- family. I’m in Atlanta and prices are crazy. I was thinking of going to SC or texas where prices are more favorable. Any tips or resources on how to run my numbers to make sure it’s a good investment? Thanks! Loved the video btw
Make sure your ROI is 10% or Higher depending on what you looking for.
Know your numbers as well.
Awesome Content. For me the most critical piece of this is knowing..How do you "run the math" based on the number of investors you have in a deal (ex. More than 2 ppl) and how much equity they should get back based on the amount of money they invested and the profit the property generated while holding the asset and when the asset is sold?
Was thinking the same thing !
I have a 5% interest rate now on my home. Id like to invest in multi family .I thought about tapping into my equity to purchase multi family, but i dont know if a cash out refi would raise my interest rate to an unaffordable amount. What do you think? My other option was money i got from another home in a divorce, but its only 21k. Im thinking thats not enough for closing cost and down payment. Which route you think is best with your experience??
I’ve heard the interest rates are going to go up, “March 2022” 😂😂. They sure did.
Every person at a bank I’ve talked to said Pre-approvals are actual approvals. And they still run your credit with pre approvals.
Is it different for a mortgage company?
So the seller carry back note like a land contract or a rent to buy type of thing?
How about DSCR loans? Are they good?
Love the video, I do have a question that I’m not sure was answered. My current home is on my VA loan and I would like to purchase a multi family to actually live in while my parents continue to live in my current home. I know that the VA Loan has limits, but my question is could I add a multi family on to my current VA loan without having to refinance my current home to start a new one?
Check the VA Loan limit in your county, if you haven’t exceeded that limit then you can use the rest towards a multi family home. Keep in mind multi family homes are more expensive obviously, so you might have to come out of pocket for a down payment. If you exceed your VA Loan limit on the multi family home then you’ll typically have to pay %20 on the rest of the loan over the VA Loan limit. For example; the VA loan limit in your county is 1 million dollars and you’ve used 500k on your first home. You now have 500k left, so now say your looking at a 1 million dollar multi family home. You’ll have to come up with 100k (%20 of 500k) out of pocket to afford that multi family. If you can’t afford the down payment I’d recommend pulling some equity out of your current home to be able to afford it.
I m following you I will need to buy multifamily home on and 2023 in GOD name. My credit is low now expect that go back up and of year .
What if you are a veteran receiving Nontaxable income and don't file taxes..vets may receive VA disability and SSDI..
Good video. I'm probably going to get into it in 2025. Its 2024 and Things may have Slightly changed since then but it's still a good educational video.
Hello glad you enjoyed our video whenever you're ready please feel free to reach out to us. We'd love to help.
Great video, thank you for putting this together. I want to buy my first property (thinking of multi unit) in Chicago, can you help with this process. I am first time home buyer with great credit score and great job. I am actually open to discuss other cities as well. Is there anyway I can get in contact with you guys or someone you can recommend
Yes, absolutely. Check out our website. www.sageregroup.com
I have my down payment money and llc, next I need to get a business checking.I'm kind of wondering who will give me loan in my llc name. My downpayment money is sitting in a savings. when and should i move it too a business checking in my llc?
I live in Rancho Cucamonga not far from long beach do you host meet ups?
PMI (Private Mortgage Insurance.
Hi Sage. I currently have a VA home loan on my primary residence. I want to purchase a fourplex with a VA loan and move into it. Am I able to do that if I keep my current home under a VA loan and rent it out? Current loan limits in Pima county is 1,245,000 for a fourplex. Would they just subtract my my entitlement already used out of the 1,245,000 entitlement to buy a fourplex? Or do I need to refinance my current home into conventional or sale it prior to buying a fourplex?
Hi Mark,
We would need to refinance your current loan and free up your VA option for the 4 plex. We've helped others with this similar situation.
What about transferring the loan into llc ?
One is able to transfer the title to an LLC but not the loan it will remain with the original applicant.
Tisk Tisk... Lenders like to run your credit. I'm not about to ding my credit everytime I want to vet a vendor for my next purchase.
Question, even though FHA opportunities are harder to find.. do you guys work outside LB? Anywhere in the surrounding areas?
Hi Andrew yes we service Long Beach and all the surrounding cities. We also have affiliates state and nationwide should anyone need assistance out of the area.
@@SageRealEstate thank you for your reply. Im keen into purchasing a fourplex with a FHA loan. I know its a little more complicated but I’ve been waiting for this downturn in hopes that I can find exactly what I am looking for. Is this something you could help me out with?
@@SageRealEstate any affiliates in New York?
Stable employment is my main issue as right now im working as a temporary in a luxury building in nyc making $25/hr. Once i enter permanent in 2 more months ill be at $33/hr. Knew of someone selling their 3 family house for 750k but without a stable income the bank wont give me the loan i need. And sadly the max i can do is the 3.5% fha but fuck that PMI.
PMI can be brutal at first. I've been able to refinance in later years to get rid of the PMI on my property. But at first it was the only way for me to be able to purchase the home.
How do you two feel about PMI?
We try to avoid it when we can, and meaning we're going to put a bigger down payment. But if there's no other way, then, we believe that it's better to acquire as soon as possible than delaying the purchase of an appreciating asset.
Is it bad ides to buy 1bed1bath 4 units? Please give me advise.
Not a bad idea at all. I own a 4 plex and all of the units are one bedroom.
I want a owner occupied 3 or 4 family.
🏠💰
I would love to know if these questions and answers apply to Canadians' investors? I live and worked in Canada but I have social security on USA since I used to live there. recently, I sold my house in Miami, but I would like to invest in real estate. where should I contact you?
Hello, email phoebe@sageREGroup.com for all of your lending questions.
Can you help someone in Colorado?
We got you covered, send us a message. www.sageregroup.com
I'ma just throw this out there:: I wanna jump straight into a 240 unit class high B at age 30 👍 i can DO IT
You could certainly achieve anything you set your mind to. All the best!
So is a mortgage broker going to run my credit ten times?
Once is enough.
I'm keep wanting to get a HELOC or refinance my primary home, to put down on my first single family or a fourplex. But I'm still not sure which would be best, what's your take on that?
We do recommend a HELOC to help with down payment on rental units. Just don't over extend yourself.
FHA
I was told fannie mae loans will only deal with you if you put it in your personal name.
It would be in your personal name.
And here we are at 7% interest ugh
You asked all pertinent questions one would have regarding a investment loan. However, it was quite hard to watch her answer your questions, it seemed painful for her.
We are real estate professionals first. Being on camera is something new to us and we continue to improve and get better. Thank you for watching.
How do I tap the equity in a 4plex? Nobody I've talked to will do a HELOC on an investment property and the one I found that would only would issue HELOC on single family homes. Cash out refis don't make since right now due to the interest
Josh,
This comes from our lender : I have only a fixed second - max two units for investment property and CLTV is credit score dependent but can go up to 90%.
Call me if you have any questions. All the best!
@@SageRealEstate thx for the update! Looks like I'll probably just have to sell to access the equity
@@JoshAllen702 Where is your property located ?
@@SageRealEstate Las Vegas, NV
@@JoshAllen702 Josh let us know if you would like a referral to a local specialist for multi-family in your area.
Should be called “financing a four plex”. It’s a bit misleading to call it “multi family” as true multi family is 5+ or more units which is an entirely different process.
We consider one or more units Multifamily. 5+ units fall under commercial financing. We have that video coming out soon. Stay tuned.
@@SageRealEstate thanks for replay! I’ll keep an eye out. Wasn’t trying to be an a** - just thought a better description would help others.
Lol talking about 4.5% and now we're at 8% 💀
The market rate shifting is out of our control. At the time of filming this was the rate. Thanks for watching and commenting.
This was a great video and interview. All information is here and the questions i had were all answered. Thanks
Thank you Diego