ADU Financing: Understanding Your Options

If you're considering building an ADU (Accessory Dwelling Unit), there's a good chance that you're looking for information on how to finance it.

Also known as an in-law or mother-in-law unit, secondary dwelling unit, granny flat or backyard apartment, ADU’s are on the rise and a viable income stream for your backyard.

In this episode, we talk about the importance of working with an experienced commercial mortgage broker. A good broker will help you find the best financing available in the market. They will educate you on available programs and be the first set of eyes on any deals as a pre-underwrite to help you evaluate the opportunity.

In this episode, learn what blanket loans are and how to utilize them to secure the best terms and free up your buying power. Learn how to keep your personal debt ratios in check so you can still buy properties in your personal name and have more funding options.

In this episode, we talk about how we funded this acquisition and why we went with a Credit Union instead of agency debt.

We got really good terms, as OFTEN happens when you deal with a credit union. We were able to fund 80% of the purchase price on a 10-year fixed rate and amortized over 25 years. The rate was 3.5%.

Did I mention no prepayment penalty! You read that right.

In this episode, we discuss how to negotiate and purchase a multifamily property with little or no money down. We talk about

1. Seller financing... aka installment sales

2. Bridge loan plus seller carry-back second trust deed/mortgage

3. Bridge plus JV partner equity

4. Financial friends network (network and grow your money partners)

5. Master lease refi after you stabilize

In this episode we discuss getting started in multifamily investing. We talk about using FHA and doing a house hack on a duplex, triplex or fourplex. House hacking is an excellent way to start your real estate investing journey. Wouldn't it be awesome do live for free or even cash flow your first house hack? Tune in to get some insight on getting your investing business off the ground.

In this episode, we discuss lending options for building a multifamily property. We dive into HUD, private debt financing, and Bank/Credit Union with Pace financing.

Here's a recap:

1. HUD 221 (D) 4

2. Private debt funds with Pace

3. Bank /Credit Union financing

4. C-Pace and how it feels in the capital stack

5. Structuring for higher leverage

Eric is an extreme sports enthusiast, professional mma fighter, and one of my best friends. He also has a plenty of tips to share with us on this livestream.

We're going to take a dive into the deep end of Airbnb:

• What to look for in a property

• tools to analyze the market

• tips on managing remotely

• and so much more

Tune in to find out how you can maximize cash flow and get to your passive income goals with short term rentals and the opportunities available.

In this episode of the Investor Financing Podcast, we talk about the transition from single family investing to buying small multifamily properties from 5-25 units, or larger. We dive into the difference in financing these property types and how multifamily financing differs from residential financing. Learn some strategies to grow and diversify your real estate portfolio.

Tune in to another episode of the Investor Financing Podcast to learn about C-Pace financing and the many solutions it can provide for real estate developers. You can even potentially do a retroactive refinance up to 3 years after completion!

Retroactive Refinancing with C-Pace Provides:

- Access to liquidity reserves

- Reduction of debt

- Coverage for cost overruns

For more information call or text Beau Eckstein at 925.852.8261