This property often appeals to a dual market. Complexes that are owner-occupied fall into the market of residential lenders. And since the eighties, the market has allowed non-owner-occupied properties as well. This residential lender will underwrite the property based on the income stream of the borrower, not the income of the project. Because of this criterion, there are restrictions on the number of rental projects one borrower can finance. There can also be limitations on the amount of secondary financing. Yet, these types of loan offer some of the least expensive fixed-rate financing for this size project.
To overcome the number of property limitations or to use the earning power of the property, several commercial loan products are available. These products are more expensive than residential lenders, but significantly more flexible. Often they will lend on portfolios of an unlimited amount of single-family detached houses, duplexes, triplexes, quadraplexes, projects with significant secondary financing (and in some cases 100% secondary financing), and to properties that are not all on the same parcel of ground.
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HOW EQUINET WORKS
