In this case, since they are borrowing their payments, these would get added to the principal balance each month, and interest would be calculated on that.If, for example, the interest rate on the note were 10%, they would implicitly be borrowing their payments at that rate.

It is about creating a balance between being open to new tenants and protecting your property interests diligently.By fostering a more secure leasing process, you can ensure that your properties remain profitable and that your relationships with genuine tenants are based on trust and reliability.

“Mitchel, you’re setting yourself up for success early—props to you for diving into multifamily while balancing school, baseball, and your upcoming career with EY.

These are also the banks that are more commonly relationship lenders and will allow your originations to out pace your balance sheet if you are consistently able to execute on the projects they fund for you.

However, the structure isn’t about charity—it’s about balancing returns with long-term community impact.Returns Through Cash Flow: Our real estate assets will cash flow, generating returns for investors over the first 20-30 years.Reinvestment for Sustainability: A portion of the profits will be reinvested into community programs to create a more stable tenant base and reduce turnover.Long-Term Value Creation: By focusing on economic development and housing stability, the portfolio grows in value over time, benefiting both the community and investors.3.

And how do you approach balancing asset management between third parties and in-house?

You certainly want to vet your property manager to ensure they are focused on balancing asset protection with tenant satisfaction.

Keep in mind that when wanting to do this with a mortgage banks first want to see substance and at least one yearly balance statement.

Of course it is always a balance between rate and occupancy.I probably will never do it , but often dreamed at one time about buying a small hotel. 

They are able to make as many payments as they'd like throughout the month if that's better for them but they will need to make their payments for the current month in the previous month so that their balance is paid in full by the due date.