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

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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.

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## Traditional Draw Request Reimbursement

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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. 

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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:

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## Credit Score Impact

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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.

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

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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.

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## DSCR Loan Refinancing Delays

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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.

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## Forced Selling

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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.

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

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## Advanced Draws for Fix & Flip Loans

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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?

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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.

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## How to qualify for advanced draws?

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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. 

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

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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?

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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. 

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## Underwriting Criteria for Multifamily Term Loans

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Multifamily term loans are based on the following underwriting criteria:

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

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## Multifamily Term Loan Interest Rates

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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:

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<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>
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## Multifamily Bridge Loan Guidelines

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<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?

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**Timeline:** 15 - 30 days

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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)
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✅ 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

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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


<br>

## The Simple Answer

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The best time to buy a house is when demand is low.

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## Seasonality of housing demand:

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From a seasonal perspective, housing demand is lowest during the Fall and Winter months.

<br>

## School

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For families looking to buy a house, it is logistically and emotionally difficult to coordinate a move during the school year. This is why demand for single family houses spikes in the Spring and Summer so children can be settled into their new house in time to start fresh at a new school.

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## Holidays

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During the holiday season, spending on gifts takes priority for many would-be homebuyers. Shortened work weeks, and holiday activities also limit the time homebuyers have to go house hunting.

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## Weather & Daylight Hours

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Finally, cold weather and shortened daylight hours tends to keep people indoors makes house hunting less appealing.

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## Going Against The Trend

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During the COVID-19 coronavirus pandemic, we saw record low interest rates and a demand for more space concentrate demand on larger suburban houses. Accordingly, house prices rose significantly in many markets:

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<iframe src="https://fred.stlouisfed.org/graph/graph-landing.php?g=yrHL&width=670&height=475" scrolling="no" frameborder="0" style="overflow:hidden; width:670px; height:525px;" allowTransparency="true" loading="lazy"></iframe><br>

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During such times, the contrarian homebuyer would look for houses to buy in markets that were negatively impacted by this phenomenon. Therefore, instead of buying a detached single family house in the suburbs, you would buy an attached single family townhome in the city. 

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Or have the discipline to hold off on buying until the market cools down -- per our earlier commentary this would mean waiting until the winter months.

<br>

As famed investor Warren Buffett said: *"Be fearful when others are greedy, and greedy when others are fearful"*.

<br>

When is the best time to buy a house? Learn our insights and save money when you buy your next house or investment property.

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When is the best time to buy a house? - OfferMarket

When is the best time to buy a house?

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

Rental Loans

Related terms

<br>

An individual training to become a licensed real estate appraiser who has completed at least 75 hours of education.

<br>

## Related terms
- [Certified General Appraiser](https://www.offermarket.us/real-estate-glossary/certified-general-appraiser)
- [Certified Residential Appraiser](https://www.offermarket.us/real-estate-glossary/certified-residential-appraiser)
- [Licensed Residential Appraiser](https://www.offermarket.us/real-estate-glossary/licensed-residential-appraiser)

A Trainee Appraiser is an individual training to become a licensed real estate appraiser who has completed at least 75 hours of education.

*Quote takes 1 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

What is a Trainee Appraiser in real estate?

* Takes 2 minutes, no credit pull

* Takes 2 minutes, no credit pull