Posted by Ed Garcia on December 30, 2000 at 21:17:25:
Maarifa,
The lending community for multiple units, differs form residential. In the residential community, seasoning is considered after 1 year.
Now if you are going to try to utilize the new equity for the buy out, most Multifamily lenders require 3 years.
I would like to caution you with the definition of multifamily units. Some investor’s think multifamily, is 1 to 4 units. In the lending community, multifamily, starts at 5 units or more.
Maarifa, I would like to wish you and your family a Happy New Year,
Posted by maarifa roho on December 29, 2000 at 09:08:11:
To Whom It May Concern,
If I take out a hard money loan on a multi-unit property, how long is it before I can refi and cash out if the numbers work? Also, which kind of institutions are best to use for this?
If you read Ed’s post on the web site you got part of the answer. He is very good at what he does and I do nto want my post to appear as a contradiction of his.
Most lenders in the residential community do require 1 year before they will use the appraised value BUT I have investors that have no ownership requirements. If your multi-family is 4 units or less it will qualify for a loan of 75 - 80% of the current appraised value.