Despite going through fluctuations, real estate remains to be one of the best ways to invest and grow your money. First, the land resource is finite while the demand for it continues to increase. Furthermore, you have many ways to make your property a money-making machine. You can have it rented, converted into a commercial space, or sold through flipping for a handsome profit.
You are also fortunate to have various kinds of properties to choose from, and these include multifamily homes.
What Are Multifamily Homes?
These are residential units clustered together inside a building or group of buildings within a complex. Some of the common examples are apartments and condominiums.
Many investors these days are choosing these properties for different reasons. One is their flexibility. You can convert them to retirement communities or rentals. Later, you may upgrade them into a nice accommodation for travelers. Of course, cash flow is more stable since you have many units up for grabs.
How to Finance It
You can build a multifamily home or buy an existing building. Either way, it is not going to be very cheap for you. Fortunately, financing can be more flexible and even easier.
One of the advantages of buying a multifamily home is a possible quick approval of the loan because of the property’s more robust monthly cash flow. You may also qualify for a Freddie Mac multifamily loan provided by different financial firms like Bonneville Multifamily Capital.
Freddie Mac is not a lender, but it provides funding access to lenders. In turn, it provides you, the borrower, with more flexible and even cheaper loans to build or buy your multifamily units.
Although you cannot borrow directly from the government, you can look for a correspondent lender of Freddie Mac in your area. They have the knowledge, skill, and connections to hasten your application process and make it more pleasant for you.