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How to Purchase a Multi-Family Property – Suggestions from The Estes Group

September 25th, 2020

Choosing to add multi-family properties to your portfolio is an excellent choice. You can enjoy higher cash flow, increased portfolio value in less time, and lower investment risk. This option is easier to finance because of the steady cash flow you earn when you buy multi-family apartments; even when a unit is vacant. If you have the means to finance your new investment, you can get started now. But other times, you may want help to buy multi-family apartments. Do you know where to go for some outside financial help?

Obtain effective acquisition strategies for your next multi-family property purchase when you utilize the brokerage and transaction services of The Estes Group. We work with investors, investment companies, life companies, and lending institutions to help buy, sell, or lease their assets. Depend on us to give you the pros and cons of a particular property so you can make the best decision for your financial goals.

4 Ways to Finance a Multi-Family Property Purchase

Sometimes investing takes a little creative leveraging. Here are four avenues you might consider before you decide to buy multi-family apartments:

  1. Equity Share Investors: This option utilizes another real estate investor’s money to purchase a multi-family property in exchange for a percentage of equity ownership. They will also receive a portion of the monthly cash flow and will receive a percentage of the profits when the property is sold. It is an excellent way to gain long-term passive income or a quick return on their investment from the sale.
  2. Real Estate Syndication: Some investors will come together to provide financing for property investment. They come in a few different forms. One is through a partnership where someone joins in on funding a property. Both get something for their contribution. It might be equity, a return on the investment monies, or sharing in the responsibilities of owning and managing the real estate.
  3. Hard Money Lenders: These lenders look primarily at the earning potential of an investment and not your credit history. You will want to do your homework if you consider this option over some of the others listed. The interest rates are higher, and the amortization period is much shorter.
  4. Private Money Lenders: This may be the most challenging option to use, especially if the lender has no ties to the real estate investment arena. Many private money lenders include family members, friends, or community members with the means to provide the appropriate finances.

Fund Your Multi-Family Investment Property Purchase Wisely

Consider all your financing options before you make your next investment choice. Whether you want to lease, dispose, or buy multi-family apartments, the team at The Estes Group can help. We have the resources and contacts to find the right real estate investment and the options to finance them. Our client-focused mission ensures that we work with all of our clients to handle their portfolio in a way that meets their financial goals. Check us out and experience the difference outstanding customer service makes.

Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced investment property brokers. We’ll help you purchase a multi-family property that delivers the best return on investment.