Utah Company on National “The Real Estate Guys” Show to Discuss Misunderstood Way to Finance Multifamily Properties

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Bonneville Multifamily Capital was featured on The Real Estate Guys™ Radio Show and discussed misconceptions about financing multifamily properties.

Bonneville Multifamily Capital today announced it was featured in the newest episode of The Real Estate Guys™ Radio Show, one of the most downloaded investing podcasts on iTunes with previous guests including Donald Trump, Michael Bloomberg, Peter Schiff, and Rich Dad Poor Dad best-selling author Robert Kiyosaki. The Utah-based company was featured to discuss an often-misunderstood way to finance commercial multifamily properties that trump standard commercial loans by offering smallest down payment requirements, low interest rates and monthly payments and greatly reduced risk through no extended personal liability – and all without the standard commercial loan balloon payment.

“There are many misconceptions about federally insured loan programs, but that means savvy investors who understand them can take advantage of their exceptional benefits to grow their portfolio,” said Bonneville Multifamily Capital’s Paul Winterowd. “FHA, commonly known as HUD loans, actually offer lower down payment requirements, greatly reduced risk through no extended personal liability, lower interest rates and monthly payments and best of all – no balloon payment… FHA loans, are becoming more relevant, especially for multifamily development, as it is becoming more challenging for developers to secure construction loans through the more common banking channels.”

“If you’re in the multifamily space and you didn’t know about it before – you’re salivating right now,” summarized Robert Helms, The Real Estate Guys™ host and renown real estate investor.

FHA commercial multifamily loans are backed by the full faith and credit of the federal government, but the federal government does not loan the money. There are approximately 100 Multifamily Accelerated Processing (MAP) lenders across the nation authorized by HUD to originate, underwrite and fund these commercial multifamily loans – including Bonneville Multifamily Capital. Bonneville Multifamily is the only independent HUD MAP-approved lender in Utah with dedicated origination, in-house underwriting and servicing (total servicing exceeds $3 billion in portfolio).

The Real Estate Guys™ episode highlights the benefits of FHA/HUD commercial multifamily loans and how they are different from the other five main categories of standard loans – as well as FHA loan qualifications and application processes. Benefits of FHA multifamily loans include:
·         Lower Down Payment Requirements: Unlike standard commercial loans, FHA loans allow up to 85 percent loan-to-value (LTV) on acquisitions and 85 percent loan-to-cost (LTC) on new construction. Standard commercial loan maximums are up to 80 percent LTV and 75 percent LTC.
·         No Balloon Payments: Nearly all commercial real estate loans have a 5 to 10-year term followed by a balloon payment or transition to a variable rate loan. The FHA 223(f) loan term is 35 years and 221(d)(4) construction-to-perm loan term is 42 years – with no balloon payments and a locked-in interest rate for the duration of the loan.

  • Lower Interest Rates: FHA multifamily loan interest rates are typically 50-75 basis points lower than bank and agency interest rates.
  • Lower Monthly Payments: Because of the longer amortization of a loan, it yields a smaller monthly payment.
  • Greatly Reduced Risk Through Non-Recourse:

     o Recourse Loans: The vast majority of bank loans are recourse loans, meaning the borrower is personally liable for the outstanding debt if the loan goes into default. This means the lender could claim other investment properties or even personal assets until they are made whole. It is considered balance sheet liability.
     o Non-Recourse Loans: If/when a non-recourse loan goes into default, the property itself is the only collateral. The lender has no additional ability to pursue the borrower if the sale of the property does not satisfy the debt. A non-recourse loan is not considered balance sheet liability, thereby no negative impact to your ability to secure additional debt.

  • Generational Wealth Transfer: FHA loans make the transfer of both asset and debt possible because the loan is assumable. Heirs can take over the debt on the property as it stands rather than having to get a new loan or be forced to sell the property to satisfy the outstanding note.

“A non-recourse loan – that is like the holy grail of commercial lending – so #1 right out of the gate that’s awesome,” said The Real Estate Guys™ host and financial strategist Russell Gray during the episode. “High leverage rates – awesome. You’ve got low interest rates – awesome. Right, you’ve got long terms, fixed rates, and fixed terms without balloon payments and things to worry about – that’s awesome.”

“There is currently over $1 trillion of outstanding debt on multifamily assets in the United States,” added Winterowd. “We help real estate investors minimize foreseen and unforeseen risk while maximizing their use of leverage – and FHA multifamily commercial loans are often the best way to achieve those outcomes.”

For more information, a copy of the accompanying special report “Let the Government Fund Your Next Multifamily Deal” will be automatically sent to you by emailing fha(at)realestateguysradio.com.


Bonneville Multifamily Capital, a division of Bonneville Real Estate Capital (BREC), a full-service mortgage banking firm. Since 1975 BREC has originated more than $6 billion in interim and long-term loans on real property across the United States.

Bonneville Multifamily Capital is one of the largest USDA 538 lenders in the country, closing over 100 loans in the past four years, with an average loan of $1.5 million. Bonneville Multifamily Capital is the only independent, Utah- based HUD MAP-approved lender with dedicated origination and in-house underwriting and servicing. Total servicing exceeds $3 billion in portfolio.

Bonneville is a founding member and regional owner of Q10 Capital, LLC—one of the top five largest intermediaries in the placement of commercial real estate capital. Q10 | Bonneville is able to offer a wide variety of creative financing solutions for the entire spectrum of income-producing properties.


*To schedule an interview please contact 760-519-6612 (mobile) or abertha(at)bmfcap.com.

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