About Us
Prime Point Capital specializes in delivering customized mortgage brokerage solutions for acquisition, construction, and stabilized financing.
Multi-Family Finance
We understand the nuances of multi-family financing and work diligently to structure loans that align with your investment goals.
Welcome to Prime Multi-Family Loans
Multi-family properties such as apartment buildings, duplexes, triplexes, and larger complexes offer investors a way to generate consistent rental income with the potential for long-term appreciation. Financing for these properties differs from single-family home loans because lenders evaluate both the borrower’s creditworthiness and the property’s ability to generate steady rental revenue
Key Features:
Loan Sizes & Terms: Depending on the size of the property (number of units) and your qualifications, loan amounts can range from small balance programs (around \$1 million) to large portfolio loans (tens of millions). Terms often vary between 5, 7, 10, or even 30 years.
Interest Rates: Rates may be fixed or adjustable. Generally, fixed-rate loans offer predictable monthly payments, while adjustable-rate mortgages (ARMs) may start lower but can fluctuate over time.
Underwriting Criteria: Lenders typically look at the debt service coverage ratio (DSCR), loan-to-value (LTV) ratio, and the borrower’s net worth and experience. The property’s occupancy rate, location, and maintenance history also play a critical role.
Benefits:
Steady Cash Flow: Multiple rent-paying tenants help mitigate the risk of vacancies compared to single-tenant properties.
Economies of Scale: Managing and maintaining multiple units in one location can be more cost-effective.
Appreciation Potential: Well-located multi-family properties can appreciate over time, adding to an investor’s equity.
Considerations:
Property Management: More units mean more tenants, so you may need a dedicated manager or management company.
Maintenance Costs: Repairs and upgrades for larger buildings can be expensive. A solid capital reserve plan is essential.
Regulatory Landscape: Depending on your jurisdiction, rent control and tenant protection laws can impact revenue.
How Prime Point Capital Helps
At Prime Point Capital, we understand the nuances of multi-family financing and work diligently to structure loans that align with your investment goals. Our team will help you navigate underwriting, assess the DSCR, and identify the best loan programs ensuring you close smoothly and on time.