Unlocking Hidden Goldmines: Why Now Is the Perfect Time to Dive Headfirst Into Multifamily Investments (We’ve Already Started)
Dave:
Wow. Construction loan in the sixes.
Kathy:
Yeah,
Dave:
That’s pretty darn good.
Kathy:
Our partner in Texas has banking relationships and it is really good. It’s shockingly good, but the deal would’ve still worked at 9%. So now we get to go back to the investors and say, well, we got a few hundred thousand dollars that we might just be able to give right back to you, or at least have in reserves. So it’s the same with Multifamilies. When we’re underwriting it, it’s going to be very, very conservative. We’re keeping the LTV at 65%. So we’ve talked about 65 to 70%, but low enough we’re not going to be doing those bridge loans that got everyone in trouble. The bridge loan is sort of a, I guess I could explain it like a second lien. It’s a higher interest rate and they’re not very forgiving
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