Financing 2-4 Unit Multifamily

Hello everyone, my name is Lane Aldrich, I am with First Colony Mortgage. I oversee all the investor-facing financing for the Fourplex Investment Group. I want to take some time today to do an introduction to FIG's financing process. I'll dive into the model of FIG on the financing side and how it's a little bit different than other purchases in real estate that you've likely experienced up to this point. My goal is to make sure that you have a good introduction as to how this process works as you dive into and make a purchase with FIG.

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Financing a new construction duplex, triplex, or fourplex in a masterplan community is pretty unique. A lot of times investors come to us and say "oh, I already have a bank." That's okay, but kind of not. So we want to talk about that...

Original Article: https://bit.ly/2TGwV2l

It's common to have questions on how our financing works since our process is a little unique. FIG is a pre-construction model and is wholesale—so while you're in the early stages of working with us, understanding the financing process and getting pre-approved is important. To help you out, we've created this section on our site to give you short videos on our process and general info.

Original Article: https://bit.ly/3dcIqpf

In the last 6 years, Lane Aldrich has overseen the financing for about $600 million worth of build-to-rent multifamily​. His office does just as much (if not more) than anyone in the country when it comes to financing new construction 2-4 unit properties...

Original Post: https://bit.ly/3dRsO9W

Topics Covered:

• What is the construction loan going to look like?
• Can I get my own or not?
• Explaining interest rates and prime plus one
• Are construction loans expensive?
• Breaking down payments
• 12-month timeframes
• Is it easier to get a construction loan than a 30-yr fixed?
• What if the builder takes longer than the contract period?
• Incentives/penalties for the builder to finish on time
• Has FIG changed its construction loan process since FIG has been in business?

Original Post: https://bit.ly/3e0yjD8

What documents are required to get pre-approved for a residential multi-family loan.

Start the FIG pre-approval process here: https://bit.ly/327QkKj

Let's go over the timeline of a 2-4 unit multifamily purchase on the financing side. Specifically new construction financing. Once you've knocked out your pre-approval and closed on the construction loan, what next?

Original Article: https://bit.ly/3fKxWPq

Intro to setting up entity structure with Steve Olson, Director of Sales, Fourplex Investment Group.

• Initial cash to close
• Are there ways to "house hack" or come in with a smaller down payment?
• Is the project cohesive with FHA or VA financing?

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• What if I want to buy multiple properties with FIG in multiple states?
• How does that work?

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• Can you all go in together and purchase a fourplex as a group?
• What does that look like?

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• What are interest reserve accounts used for?
• Why are the closing costs higher than on similar multifamily transactions?

Original Article: https://bit.ly/3ttAINu

More Info: https://bit.ly/3mRVLGH

• I'm about to close on my construction loan for my FIG purchase. What's next?
• Am I going to be making payments every month? What does that look like?
• What interest is due?
• What if there are funds left over in my interest reserve account after construction is complete?

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"About a month ago, Fannie Mae came out and said they are reassessing their portfolio and the number of loans that they are going to allow. They also stated that they do not want their portfolio of second homes and investment properties to exceed 7% of all loan volume that's originated through these conventional loan channels..."

Original Post: https://bit.ly/3uLjvz7

FIG's director of sales, Steve Olson, reflects on the last year and what current trends hint at as we get ready for new multifamily developments in 2021.

Original Article: https://bit.ly/3pgXx5K

We're over a year into the pandemic. How has that affected lending? Is it harder to get loans? Is lending still available?

Original Article: https://bit.ly/3ggtcl6

We brought on guest speaker, Mark Barbour, of Specialty Tax Advisors to discuss common questions/strategies we can apply as multifamily investors.

Some of the items covered:

• Reasons to purchase a fourplex
• Qualifying as a real estate professional
• Benefits of cost segregation
• Equity build-up during construction
• Case Studies, Brickyard & Bridgestone Crossing
• Tax Cuts and Jobs Act of 2017
• Bonus depreciation
• 45L tax credits
• (CARES ACT) Coronavirus Aid, Relief, Economic Security Act
• Current tax law vs President Biden's tax plan
• Closing thoughts, Q&A

Original Article: https://bit.ly/3g6qMUq