<br>

## Best practices and considerations for selling a rental property

<br>

**1.** How much would it sell for as a primary residence vs. turnkey rental? Rental investors are not likely to pay what a primary residence buyer would pay.

<br>

**2.** Can you sell AS IS and not conduct expensive pre-sale repairs? How might that affect your net proceeds in a sale to either a rental investor or a primary residence buyer?

<br>

**3.** What are the carrying costs of your vacant property? Would it make more sense to have tenants in place on a month-to-month lease or would this make it too difficult to coordinate showings (especially with COVID related health and safety concerns)?

<br>

**4.** Do you need to sell now or can you continue to rent (i.e. short term lease) while addressing deferred maintenance?

<br>

This is a lot of food for thought and everyone has a different situation when selling a rental property. We would be happy to run the numbers for you to help you figure out the best strategy for selling your rental properties.

<br>

## Sell with OfferMarket

<br>

The easiest and most cost-effective way to sell your rental property is with OfferMarket. Whether your rental property is vacant or tenant-occupied, we have handled it all and we look forward to facilitating your  Here's how it works:

<br>

**1. Get Offers**<br>

<br>

Take 30 seconds to fill out our [Get Offers](https://www.offermarket.us/sell) request. We'll send you our no obligation marketing contract and collect property details.

<br>

**2. Review Offers**<br>

<br>

Compare multiple competitive AS IS, commission-free offers from qualified buyers in our network.

<br>

**3.  Close on your timeline**<br>

<br>

Select the best offer that aligns with your timeline. Whether you need to sell in under 30 days or you have time, our rental property sales platform is designed to meet your specific requirements. Let us handle the paperwork, titlework, and coordinate closing.

<br>

## What our sellers are saying

<br>

"When I decided to sell my rental properties in Baltimore, as an out-of-state seller, I was looking for something quick and easy but I did not want to have any regrets about selling for too low a price. At first I tried working with an agent on the MLS, that turned out to take forever because we had to wait for lease expiration and multiple FHA loans fell through. Then a friend told me about OfferMarket. I only with I found them sooner! They ran a competitive campaign, brought in a mix of rental property investors and retail homebuyers, and delivered net proceeds beyond my expectations. I avoided over $100,000 in commissions. I never would have thought I'd be able to sell my rental properties so fast, as-is, with so little effort. If you're selling a rental property, use OfferMarket."

<br>

*Jordan R., FL*

<br>





Selling a rental property involves unique challenges. Learn best practices for selling a rental, including managing occupancy and condition.

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Selling A Rental Property - OfferMarket Blog

Selling A Rental Property

<br>

<div style="width:100%; text-align: center;">
<iframe class="youtubeVideo" width="100%" height="315" src="https://www.youtube.com/embed/f-T2lW2yRL0" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div>

<br>
<br>

What if instead of being reimbursed by your private lender for your rehab, you received your rehab funds in advance? 

<br>

We'll get back to this in a moment, but first let's take a look at the way most private lenders fund the rehab component of your fix & flip loan.

<br>

## Traditional Draw Request Reimbursement

<br>

The traditional fix & flip loan consists of an initial component for the purchase of the property and a rehab component for the renovation of the property. While the initial purchase component is advanced at settlement for the investor to purchase the property, the rehab component is typically reimbursed based on the portion of the scope of work that has been completed. 

<br>

It doesn't take a financial genius to understand that this is not an ideal cash flow situation, since the fix & flip investor needs to "float" the project to get to each draw reimbursement. Even the most experienced flippers and BRRR investors are forced to use credit cards and cash on hand to fund the rehab and then wait for reimbursement. 

<br>

Unsurprisingly, we see the following negative consequences of traditional draw reimbursement:

<br>

## Credit Score Impact

<br>

As real estate investors go through waves of high credit utilization, their credit score suffers. This can cause issues when it comes time to refinance into a DSCR rental loan and the private lender limits the LTV due to credit score below 720 -- the magic number in real estate investing.

<br>

## Leaving Money In the Deal: Low Cash On Cash Return

<br>

If your credit score is normally 740 but you just finished an intensive rehab that required using a high percentage of your credit card limit, you might find yourself in a situation where your credit score is now 670. In this scenario, at 740 FICO you'd qualify for 75% LTV on a cash out refi, but at 670 you might qualify for 65% LTV. That could easily be the difference between a perfect BRRR where you don't leave any cash in the deal, and instead leaving thousands of dollars in the deal or even worse: being forced to bring more cash to the refi closing table. In this scenario, your [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return) is significantly lower than it would otherwise be. Your cash that's stuck in the deal might have been your down payment for your next investment property.

<br>

## DSCR Loan Refinancing Delays

<br>

This can lead to delays refinancing out of higher interest, short term interest only fix & flip loans, and can be especially stressful in a rising interest rate environment. If you take time to build back your credit to complete your refi, you might also miss out on your next deal.

<br>

## Forced Selling

<br>

Going one step further, low credit score can prevent you from qualifying for a DSCR rental loan, and when you otherwise would have rented and refinanced the property, you're now forced to flip it.

<br>

Long story short, the traditional draw process is a problem and OfferMarket Capital has the solution: Advanced Draws

<br>

## Advanced Draws for Fix & Flip Loans

<br>

Wouldn't it be better if you received a wire of funds for each stage of your rehab? Let's say you're ordering $20,000 of lumber and $12,000 of windows. What if we wired you $32,000 so you never have to carry a balance on your credit card?

<br>

With advanced draws, we will advance your rehab funds for each stage of your scope of work. We then inspect the work in order to advance funds for your next stage, and so on.

<br>

## How to qualify for advanced draws?

<br>

As long as you've completed 5 or more fix & flip or fix & rent rehabs, you are qualified for OfferMarket's **Advanced Draws** program. We think about this a **credit score protection program**, an excellent way to optimize your refi exit strategy and do more deals. 

<br>

We'd love the opportunity to be your private lender.

<br>

Advanced draws help fix & flip and fix & rent BRRR investors receive funds at each rehab stage, protecting your credit score and optimizing investments.

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What is advanced draws for fix and flip loans? | OfferMarket

What is Advanced Draws for fix and flip loans?

<br>

## What is a Multifamily Term Loan?

<br>

Multifamily term loans are asset-based loans for purchasing and refinancing 5+ unit residential properties. Multifamily term loans have an interest and principal repayment (amortization) component. Investors have a few options when selecting the best multifamily term loan for a specific deal. 

<br>

## Underwriting Criteria for Multifamily Term Loans

<br>

Multifamily term loans are based on the following underwriting criteria:

<br>

✅ Deal economics (see: [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator))</br>
✅ Borrower track record of experience</br>
✅ Borrower credit score</br>

<br>

## Multifamily Term Loan Interest Rates

<br>

Our [DSCR Loan Index](https://www.offermarket.us/blog/dscr-loan-interest-rate-index) tracks the prevailing interest rate for DSCR loans. See how OfferMarket's DSCR loan interest rate and terms compare:

<br>

<iframe width="551" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRJPw1fYWqj_5mdlNBrD5MLne_ApqpOXlNmkmNE_sZfPgsbn9pU0mWUenEO1x6WE9237S7jzaQE2Hig/pubchart?oid=262687025&amp;format=interactive"></iframe>
<br>
<br> 

## Multifamily Bridge Loan Guidelines

<br>

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th>Guidelines:</th>
    <th>Multifamily Bridge Loan</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Interest Rates</td>
    <td>see index above</td>
  </tr>
  <tr>
    <td>Origination Fees</td>
    <td>1 to 2 points (% of loan amount)</td>
  </tr>
  <tr>
    <td>Property Types</td>
    <td>5+ unit and mixed use</td>
  </tr>
  <tr>
    <td>Loan Amounts</td>
    <td>$500,000 - $25,000,000</td>
  </tr>
  <tr>
    <td>Maximum LTV, ARV</td>
    <td>75%</td>
  </tr>
  <tr>
    <td>Maximum Loan To Cost</td>
    <td>Purchase: 80% of As-Is Value and 100% of rehab, Refinance: 75% of As-Is Value and 100% of rehab</td>
  </tr>
  <tr>
    <td>Term Length</td>
    <td>up to 24 months -- +0.5% for months 13 - 18, +0.75% for months 19 - 24</td>
  </tr>
  <tr>
    <td>Minimum Guarantor FICO</td>
    <td>650</td>
  </tr>
<tr>
    <td>Ownership</td>
    <td>LLC or Corporation</td>
  </tr>
  <tr>
    <td>Recourse</td>
    <td>Full recourse, Limited recourse</td>
  </tr>
</tbody>
</table>
</div>

<br>

## What is the process for getting a multifamily term loan?

<br>

**Timeline:** 15 - 30 days

<br>

1. [Get a quote](https://www.offermarket.us/loans) (takes 1 minute)
<br>
2. Complete processing action items in your [My Loans portal](https://www.offermarket.us/my/loans)
<br>
✅ Credit & Background Check</br>
✅ Personal Financial Statement</br>
✅ Schedule Of Real Estate Owned (track record of experience)</br>
📄 Download your pre-approval letter</br>
📄 Download your loan terms</br>
✅ Upload entity docs</br>
✅ Authorize title order</br>
✅ Authorize appraisal order</br>
3. Schedule closing

<br>









Multifamily term loans are asset-based for purchasing and refinancing 5+ unit residential properties. OfferMarket offers these loans to experienced investors.

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Multifamily Term Loans | OfferMarket

Multifamily Term Loans

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

1.  BiggerPockets

2. HousingWire

3. NHMC (National Multifamily Housing Council)

4. Mortgage Bankers Association

5. National Association of Home Builders (NAHB)

6. Jake REI

7. Nareit (National Association of Real Estate Investment Trusts)

8. St. Louis Federal Reserve

Bonus: Real Estate Blogs

Follow OfferMarket on Twitter

Related content

<br>

Twitter is a great medium to consume information and contribute to the conversation. These are our favorite real estate-focused twitter accounts.

<br>

## 1.  BiggerPockets

<br>

<a href="https://twitter.com/BiggerPockets?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @BiggerPockets</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 2. HousingWire

<br>

<a href="https://twitter.com/housingwire?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @housingwire</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 3. NHMC (National Multifamily Housing Council)

<br>

<a href="https://twitter.com/ApartmentWire?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @ApartmentWire</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 4. Mortgage Bankers Association

<br>

<a href="https://twitter.com/MBAMortgage?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @MBAMortgage</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 5. National Association of Home Builders (NAHB)

<br>

<a href="https://twitter.com/NAHBhome?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @NAHBhome</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 6. Jake REI

<br>

<a href="https://twitter.com/jkostecki_rei?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @jkostecki_rei</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 7. Nareit (National Association of Real Estate Investment Trusts)

<br>

<a href="https://twitter.com/REITs_Nareit?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @REITs_Nareit</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 8. St. Louis Federal Reserve

<br>

<a href="https://twitter.com/stlouisfed?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @stlouisfed</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Bonus: Real Estate Blogs

<br>

<a href="https://twitter.com/usrealestate101?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @usrealestate101</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Follow OfferMarket on Twitter

<br>

<a href="https://twitter.com/OfferMarketUS?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @OfferMarketUS</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Related content

<br>

[Best Real Estate Blogs](https://www.offermarket.us/blog/best-real-estate-blogs)<br>

<br>



These are the best real estate Twitter accounts to follow if you’re interested in real estate investing. Stay updated with the latest trends and insights.

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8 Best Real Estate Twitter Accounts To Follow

1. BiggerPockets