What Are Multi Family Properties Anyway?
A building or structure that is designed to house “several different families” in separate housing units. The most common type of multifamily housing is an apartment building. Duplexes, quadruplexes, and townhomes also qualify as multifamily housing. The entire building or structure may be owned by an individual, an entity, or, as is the case with condominiums, by individuals who have purchased units.
Most people’s definition of Multi- Family properties are limited to Apartments.
But Multi family properties extend well beyond apartments buildings. Multi family properties include:
- Senior Apartments
- Student Housing
- Nursing Homes
- Assisted Living Facilities
- Long Term Demand: No other property expands the entire cycle of life. From the beginning of careers to the end of life cycle, Multi Family properties are utilized. At the start of life These properties are desired for College graduates, newly married couples, expanding families to the end of life cycle which includes Assisted Living Facilities, Nursing Homes and ultimately Hospice Care Properties. No other property class has this type of long term demand.
- Financing In Abundance: There is plenty of money available for financing Multi-Family properties. Banks, Hedge Funds, REITS and foreign investors consider Multi Family properties to be relatively safe investments and for these reasons , there are Trillions Of Dollars available for financing commercial Multi Family properties.
- Best Market Terms : These properties have some of the best financing terms available. The cost of the money is very cheap with rates as low as 3% Interest rates that are fully amortized over a 40 year terms, Non-Recourse Loans, No Personal Guarantees and financing as high as 100% LTV.
- Subsidized Financing Programs: Because housing is so important to the Federal, State local Governments, there are plenty of subsidized programs available for investors at the Federal, State and local levels as incentives to investors to invest in the multi family properties. These include Low Income Tax Credits (LITC), loan forgiveness programs, guaranteed rent programs and many other variations.