Hard money loans are often a go-to for fix‑and‑flip buyers or small landlord gigs. But what happens when you’re stepping into a flip with multiple units—say, a duplex, triplex, or larger? The rules change, but the fundamentals stay rock-solid. Let’s unpack how hard money works in the multifamily world—and why savvy investors and brokers still turn to Lending Bee for funding that scales.

The Same Speed and Flexibility

Whether you’re closing on a single-family home or a four-unit building, speed matters. One thing doesn’t change: hard money gets deals done fast—way faster than banks.

Hard money lenders like Lending Bee fund in days, not weeks, giving investors a leg up on time-sensitive deals. That advantage becomes even more valuable when multiple units mean more eyes on the property and more competition.

Loan-to-Value Shifts—but Predictability Holds Steady

Single-family home LTVs usually land around 70–75%, giving lenders room to breathe. In multifamily deals, though, risk steps up. Many lenders now tighten their belts to 60–70% LTV, rather than the 75–80% sometimes seen on flips.

That change reduces borrowing power – but it also adds a cushion of safety for investors. What stays the same is predictability: conservative underwriting lets brokers model returns confidently, no matter the property type.

Income Scrutiny Goes Up—but Lose the Guesswork

When you own a duplex or larger, income becomes part of the story. Lenders will ask for rent rolls, operating expenses, and current occupancy—especially for 5+-unit buildings—a step up from the flip-and-go simplicity .

But here’s the sweet spot: hard money still evaluates the asset, not just the borrower. You may need to show a DSCR (debt-service coverage ratio) of 1.25+, but you won’t face the prolonged bank process . The review is asset-centric and fast—no endless documentation gaggle.

Exit Strategy Shifts—But Comparative Planning Remains

Single-family investors flip or refinance quickly. With multifamily, you might be holding for long-term cash flow, or stabilizing before going conventional. That’s a shift—but not a showstopper.

Lending Bee supports a range of exit strategies:

  • Quick flips after light rehab
  • Stabilize-and-refi into a conventional loan with better terms
  • Long holds with a cash-flow-interest loan and a clear “take-out” plan

The key? The exit remains a cornerstone. What changes is horizon – not discipline.

Costs Scale – but ROI Can Too

Multi-unit deals require bigger capital – larger rehab budgets and higher monthly carry costs. Yes, hard money rates stay higher than conventional, but cash flow often offsets the rate premium.

As long as rehab budgets and rent projections make sense, the math holds. Investors get a higher volume bet in exchange for scaling lenders’ familiarity with asset-backed funding models.

Due Diligence Doesn’t Vanish—It Deepens

Flips might demand a quick inspection and market analysis. Multifamily brings in market rent comps, tenant history, HVAC systems per unit—maybe even zoning or occupancy specifics .

At Lending Bee, our team dives into those details. We still act quickly—but we don’t skip over the real estate finery that move-the-needle on income risk.

Why Brokers Still Love It

Brokers working on multifamily deals deserve a match that scales:

  • Speed and certainty—even for complex properties
  • No long bank hang-ups—just clear underwriting
  • Repeatable solutions—your investors come back because the model works

That’s why multifamily hard money deals don’t scare seasoned brokers—they attract them.

When Hard Money > Traditional Lenders

There are times when going hard money isn’t just an option—it’s the only option:

  • Cash-flow gaps keep traditional lenders at arm’s length
  • Rehab-heavy or pro forma-based deals that banks won’t touch until stabilized
  • Tight timelines where conventional processing kills opportunity

When lenders say “no” because of income instability or complex property types, lending partners like Lending Bee step in with clarity, speed, and structured funding.

Case in Point

One investor approached us with a 6-unit property: 50% occupied, partial rehab required, and a traditional lender balked. Lending Bee offered a bridge solution:

  • Loan at 65% LTV based on ARV
  • Rehab draws staged over 6 months
  • Exit plan: stabilize, lease up, refinance into permanent debt

The investor covered rehab, fixed below-market rental rates, brought occupancy above 90%, and refinanced into conventional terms with strong cash flow—without having to walk away from a mislabelled “bad” deal.

Key Takeaways for Advisors and Investors

  • Hard money works at scale—just not cookie-cutter
  • Expect lower LTVs and deeper due diligence
  • Prepare clear exit strategies: refinance, rental hold, flip timeline
  • Costs matter—but income can offset well
  • The core promise stands: speed, flexibility, and certainty

Conclusion

When you strip out the noise, multifamily hard money is just the bigger sibling of single-family solutions—it’s familiar, but smarter. Hard money still plays the same tune—fund fast, focus on asset, exit clearly. The stakes are higher, but the returns can be too.

If your investors are ready to step up to multi-unit deals and need a funder who’s scalable, responsive, and risk-aware – let’s talk. Lending Bee’s ready to back brokers who see vision where banks see complexity.