Up to 75% of price · 80% of cost · $1M to $10M
Multifamily bridge loans for value-add apartment buildings
Buy a 5+ unit building that needs work, fund the renovation, and refinance once it stabilizes. $1 million to $10 million, interest only, 18 to 24 months.
Multifamily bridge loan (5+ units) terms
| Use | Purchase or delayed purchase of a 5+ unit residential building that needs renovation to stabilize, or a quick bridge acquisition |
|---|---|
| Property | 100% residential, 5 units and up; no mixed use and no owner-occupied units |
| Markets | Select East Coast markets |
| Loan amount | $1,000,000 to $10,000,000; as-is value at least $100,000 per unit |
| Term | 18 to 24 months interest only, with up to two 6-month extensions |
| Leverage | Up to 75% of purchase price, 80% of total cost (renovation included) and 70% of as-stabilized value |
| Renovation budget | Up to 50% of the purchase price |
| Exit test | At least 1.25x DSCR once stabilized |
| Minimum FICO | 725 |
| Borrower | Full recourse |
| Foreign nationals | Not eligible |
Three caps on one loan
The loan is the lowest of three numbers: 75% of the purchase price at closing, 80% of total cost once the renovation money is added, and 70% of what the building should be worth when it is stabilized. On a well-bought deal the cost cap usually binds. On a deal priced near today's value, the stabilized-value cap is the one that tells you the plan is too thin.
Worked example. A 24-unit building bought at $3,600,000 ($150,000 a unit) with a $900,000 renovation. 75% of price is $2,700,000 at closing. Total cost is $4,500,000, and 80% of that is $3,600,000, so up to $900,000 of renovation can be funded on top. If the building should appraise at $5,400,000 once stabilized, 70% of that is $3,780,000, which leaves room. The loan is $3,600,000 and you bring $900,000 plus costs.
The exit is the underwriting
A bridge loan is only as good as the loan that replaces it. This program wants 1.25x debt service coverage at exit, meaning net operating income at least 25% above the payment on the permanent loan. Build your business plan backward from that: target rents, expense ratio, and the payment on the agency or bank loan you expect to refinance into. Janover Capital arranges the permanent side too, so the exit can be priced before you close the bridge.
To check a building's pricing against its income, the cap rate calculator solves either way: cap rate at a price, or value at a cap rate.
Who it fits
Operators buying 5+ unit residential buildings with a renovation plan, a credit score of 725 or higher and the liquidity for a full-recourse loan. No mixed use, no owner-occupied units, and no foreign national borrowers on this program.
Questions people ask
What is a multifamily bridge loan?
A short-term, interest-only loan that lets you buy an apartment building that is not yet ready for permanent financing, fund the renovation, and lease it up. You pay it off with a long-term loan or a sale once the building is stabilized.
How much renovation can the loan fund?
The renovation budget can be up to 50% of the purchase price, and the whole loan, renovation included, stays within 80% of total cost and 70% of the value the building is expected to have once stabilized.
What does stabilized mean here?
Leased and operating well enough to carry a permanent loan. On this program the test is a 1.25x debt service coverage ratio at exit: net operating income at least 25% above the new loan payment.
Is it available everywhere?
No. It is offered in select East Coast markets. Send the address first and we will confirm before you spend money on diligence.
Have a deal under contract?
Send the numbers. We will tell you plainly whether it fits and what the loan looks like.