The Premier Hard Money Lender For Multifamily

Multifamily investing is a hot commodity, with housing shortages delaying first-time home buyers and increasing the demand for multifamily complexes. As top multifamily lenders, Asset Based Lending offers fast and reliable hard money loans for multifamily investors across the country. These loans are designed for the purchase and rehab or new construction of multifamily properties, covering 100% of the renovation costs with loan amounts of up to $10 Million and leverage up to 85% LTC. Whether you’re looking to build a 20-unit apartment complex or renovate a residential property, ABL is ready to finance your success.

Investing in multifamily real estate requires lots of planning and diligent execution, so your lending process should be easy. As the best multifamily lenders, our goal is to deliver a seamless loan process from start to finish, as highlighted by our hundreds of five-star reviews. You’ll never use another hard money lender after you experience the ABL Difference, which includes:

Flexible underwriting – loan programs designed for investors, by investors
Transparent communication – no hidden fees or surprise costs
Full service – a one-stop shop for all your lending needs

Prequalify Today

Prequalify for your loan today or call us at (201) 942-9090. We approve loans as fast as 24 hours. Our hard money loans for multifamily can fund the following projects:

Commercial Multifamily Stats

MULTIFAMILY PRICE GROWTH FOR CLASS B AND C

+12%, YOY, Q2 2002

AVG MULTIFAMILY RENT INCREASE

+17.5%, YOY, Q2 2022

NATIONAL MULTIFAMILY VACANCY RATE

5%, Q2 2022

MULTIFAMILY VALUE IN METRO AREAS

+24%, YOY, Q2 2022

NATIONAL MULTIFAMILY STARTS

+18%, YOY, Q2 2022

NATIONAL AVG CAP RATE

4.3%, Q2 2022

Multifamily Hard Money Loans For Real Estate Investors

Financing Your Multifamily Fix And Flip

Asset Based Lending specializes in fast financing for fix and flip investors, closing loans in 10 days on average with an approval process of 24 hours. By working quickly on these fix and flip loans, investors are able to remain highly competitive in their local real estate markets and take advantage of the These 12-month interest-only bridge loans utilize flexible underwriting to match your specific project, whether you’re looking for maximum leverage, lower interest rates, or something else. We work with our borrowers to design the best possible loans to meet their investment goals. Our business model revolves around the borrower, scaling with them throughout their deals to continuously improve their loan terms as they complete round trip projects with us. ABL offers funding that covers up to 85% LTC and 100% of the rehab costs. Whether you’re working on your first multifamily fix and flip or a seasoned professional looking to scale, ABL is ready to finance your flip. Click to learn more about our multifamily fix and flip loans.

Multifamily New Construction Loans

Multifamily new construction is incredibly hot right now, as demand around major metro areas outpaces the supply of available units. ABL finances loans for multifamily construction, with similar terms to our fix and flip program. We finance 100% of the construction costs and up to 85% LTC, with the ability to close the loans as quickly as 10 days. Our team services these loans fully in-house, so you’ll be under the ABL banner from your first phone call through your final payoff, guaranteeing a five-star experience from start to finish. Whether you need to close fast, are seeking flexible loan terms, or another multifamily lender simply dropped the ball, ABL multifamily construction loans can help your project come to life.

Multifamily Rental Loans

Asset Based Lending also offers rental loans for multifamily property, helping investors refinance their bridge loan directly into a long-term buy and hold loan that allows them to keep the property as an income-producing asset. Whether you’re financing a single property or an entire portfolio, ABL can help you finance your rental property investments. Our loan criteria is slightly different for our rental loans versus our bridge loans, so not every multifamily bridge loan may qualify for our rental refinance, but our team is happy to discuss your project and see how we can help.

Residential Multifamily Versus Commercial Multifamily

In multifamily real estate, a property with two to four units is considered a residential multifamily property. When the property has five or more units, it is considered a commercial multifamily property. Asset Based Lending offers financing for both residential and commercial multifamily properties where at least 75% of the square footage is dedicated to residential living space.

Multifamily Asset Class Breakdowns

Commercial multifamily is classified by different grades, ranging from Class A to Class D. Class A is your high-end luxury properties that are typically beautiful apartment complexes that boast a multitude of amenities that support healthy and social living. As for real estate investors, many would think Class A multifamily is automatically the best option for making a return on their investment. However, Class A are the first to go vacant in a recession. These are luxury properties focused on extra amenities instead of simply the required living needs, so people will quickly downgrade to Class B if necessary. The type of clientele inhabiting Class A properties will also have high demands and high standards, so expenses and effort will be high when compared to lower class multifamily properties.

Class B is your middle-high class property, a comfortable and safe living situation for those that can afford to spend a little extra on their living space. These are in good locations with different options of transportation, whether its private parking spaces or close proximity to train stations and bus stations. These tend to be the best for real estate investors, as occupancy is relatively easy to maintain and tenants are reasonable with their expectations and asks of property managers.

Class C is your working class property, typically a little worn out or lived in and described as “ok” condition, with some pros and cons of living there. Sometimes the location is inconvenient for traveling to the heart of the metro area, or isn’t located near immediate grocery stores and social life. Many multifamily properties fall into this category, as this is your standard living arrangement across a large variety of income brackets. Asset Based Lending focuses on Class B and Class C multifamily properties, believing these to be the best options for real estate investors.

Class D is the lowest grade for multifamily properties, typically in undesirable locations and in need of heavy repairs. These types of properties need lots of work and attention to become profitable, along with being hard to maintain occupancy either due to poor living conditions or due to tenant’s being spotty with their ability to pay rent. Due to the high risk nature of Class D multifamily, ABL avoids lending on these types of assets.

What is a Good Cap Rate For Multifamily?

Cap rate, short for capitalization rate, gives investors an idea of what their ultimate cash flow will be after expenses. To reach this number, you divide your asset’s net operating income by the asset’s current market value. For example, if your net operating income is $400,000 on an asset currently valued at $1 Million, then 400,000 / 1,000,000 = 0.4, which is a cap rate of 4%. Understanding your multifamily cap rate will help you plan your investment for the long term and allow you to budget your capital to focus on future projects. Most multifamily properties are sustainable investment sources between 4% and 10% cap rate.

Using Hard Money For Investing In Multifamily Real Estate

Multifamily apartment investing can be tricky when it comes to financing, mainly because traditional financial institutions such as banks have an extremely strict lending process for projects of that size. Obtaining commercial multifamily loans from a hard money lender is the best option for most investors, since there’s less documentation and more flexible loan terms, allowing investors the ability to figure out their exit strategy first and receive a loan that best fits their business model.

Multifamily investors typically need to bring larger amounts of capital to the closing table simply because the purchase price of these properties tend to be higher, but ABL still finances 100% of rehab to ensure our borrowers can finish their projects without any risk of financial delays. Asset Based Lending can offer guidance as well as financing, helping to answer questions such as how to buy a multifamily property and what are the best places to invest in multifamily? As your lending partner, our commercial multifamily lenders will try to help you every step of the way, instead of just depositing money and being done with the project.

Great experience! They always answered or returned my calls immediately and walked me through the entire process and made sure all my questions were answered. I had a couple of questions weeks after my loan closed and they still responded immediately and made sure i was taken care of. Great experience and I would highly recommend ABL.

Cindy G.

I am glad I got to know Asset Based Lending, they made funding for my construction site very simple. They have a great team of people, that would go out of their way to help. Boris has been great and very helpful, I highly recommend them for all your Construction financing needs.

Mike A.

I have had the pleasure of working with Boris Akbashev for my real estate financing needs on my last 10-15 projects, and I cannot speak highly enough of his professionalism and expertise. Boris demonstrated a deep understanding of the lending process and went above and beyond to ensure I secured the best possible terms.

John S.

Truly a pleasure having ABL on every deal! Thanks to their lending experise and timely support and guidance throughout the process to get the best loan for my deals. I can see my company growth from 1-2 flips to numerous flips, new construction, and DSCR loan to grow my portfolio.

Pedro E.

Asset Based Lending is the place to shop for all your construction needs. Their easy funding policy, makes life so much simpler for any builder to focus on building and not be worried about financing project. Boris was supper helpful to accommodate me with all me financing needs.

Ray P.