Multifamily Bridge Loan – Louisville, Kentucky

One of Lima One Capital’s specialties is multifamily bridge financing in secondary markets with Class B and Class C properties. This multifamily loan in Louisville, Kentucky is a prime example. The property was stable, with 98% occupancy and market-level rates.

The investor was looking for a bridge loan to refinance a 105-unit property across six buildings with 2021’s low interest rates. The investor also wanted a rehab budget that would allow them to continue their project of upgrading interior finishes in about half of the units so that they could increase rents and raise the overall class of the property.

multifamily apartment complex in louisville kentucky

Multifamily Bridge Loan By the Numbers

  • Loan Purpose: Refinance and Value-Add Rehab
  • 105 units in 6 buildings
  • Class B/C Property
  • Loan Amount: $4.1 million
  • Loan-to-Value Leverage: 70%
  • Rehab Budget Leverage: 100%
  • After-Repair Value: $6.025 million
  • Loan Term: 2 years
  • Interest Only
  • Non-Recourse

A True Financing Partner

Lima One was the perfect financing partner for this investor and the commercial real estate broker on this deal. Lima One offered 70% loan-to-value financing as well as 100% financing for the rehab budget. This rehab allowed the investor to add equity by increasing the overall value of the property by almost $1 million, to a total of $6 million. The non-recourse, interest-only loan gave the investor plenty of time and funds to complete the interior rehab project, add value to the property, and continue to offer quality workforce housing at market prices to Louisville renters.

Multifamily_icon

Financing for Properties with 5+ Units

Financing for Properties with 5+ Units As a real estate investor, you’re probably looking for ways to grow and diversify your portfolio. One of the ways to accomplish this is through investing in multifamily properties that are five or more units. Multifamily...

Estimating Value-Add Rehab on Multifamily Properties

Estimating Value-Add Rehab on Multifamily Properties Multifamily real estate investing is an excellent form of investing outside of the single family space and a great way for you as a real estate investor to build wealth and generate monthly cash-flow. A multifamily...

Advantages of Refinancing a Multifamily Property

Advantages of Refinancing a Multifamily Property If you’re looking to grow your real estate business or increase the value of your current multifamily property, what are your options? You could sell your property, but there’s the risk of not getting the full value if...

Advantages of Value-Add Multifamily Investing

Advantages of Value-Add Multifamily Investing One of the strongest opportunities currently for real estate investors is found in value-add multifamily properties in the $1 million - $10 million price range. With a growing population of renters, real estate investors...

One Man’s Ceiling is Another Man’s Floor – Multifamily Relative Value in a Rising Interest Rate Environment

Multifamily Relative Value in a Rising Interest Rate Environment One Man’s Ceiling is Another Man’s Floor It’s no secret that multifamily assets enjoy the lowest return volatility and strong cash flow characteristics versus other commercial real estate asset classes....

Multifamily Investing Lessons Learned

3 Tips for Multifamily Real Estate Investing from Recent Closed Deals   Every real estate investor knows that experience is the best teacher. That’s why so many investors network at events or in online forums—to ask questions of people who have been there and...

Quick Closing Commercial Lending

How Commercial Mortgage Bankers Can Find Quick Closing Loans Commercial real estate mortgage bankers provide a valuable service. They work with a variety of lenders to ensure their clients get the best loan terms possible. As lender risk appetite ebbs and flows,...

Investing in Multifamily Workforce Housing

Why Investors Should Look for Multifamily Workforce Rental Housing The United States is in an affordable housing crisis. While state governments seek to draft legislation to address this problem, the reality is that the private sector will have to be major...

Finding Multifamily Opportunities

Two Valuable Ways to Find Multifamily Investment Opportunities   Multifamily properties have become popular real estate investment vehicles. Experienced investors discover that combining their expertise with more doors to rent can supercharge profit margins. This...

How Property Managers Create Value

6 Ways Property Managers Create Value for Real Estate Investors   A huge part of a real estate investor’s success is having the right team in place. From real-estate agents to contractors and handymen to lenders like Lima One Capital, an investor needs to have...