Multifamily acquisition strategies with cash-out refinancing is the best strategy for today's market. Lately I've taken calls from several investors who have very small loan balances, $250K or less and they are looking for rate and term refinances to lower their rate .. the problem? The loan balance is to small!
Many of these investors are sitting on large amounts of equity, some as much as $1 million! Instead of having all that equity tied up in one property, they should be refinancing with cash-out and leveraging it into the acquisition of multifamily assets (apartment buildings, apartment comlpexes or multifamily developments that help that can increase the NOI of a porfolio of multifamily assets.
Multifamily acquisition strategies should inlclude cash-out refinance to obtain the down payment for the other multifamily acquisitions. In most situations I advise my clients NOT to exceed 65% LTV but to refinance their multifamily financing and apartment loans up to 65% in an apartment loan that allows them complete a cash-out refinance.
Then we take that cash and plow it back into another asset using our multifamily acquisition strategies multifamily acquisition loan and apartment purchase loans. For more information on how to use senior secured debt with cash-out refinancing to acquire additional apartment buildings, apartment complexes and/or multifamily assets call Michael Gross of Dividend America Commercial Lending direct at 404-819-4511 or email mgross@dividendamerica.com
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