This effect is creating a wave of real estate investors like never before, that are bidding up properties.The ultra rich are not looking at buying a 20 unit apartment (unless they made their wealth in real estate), they are going into institutional funds as an LP.  

This is why IRR is used by sophisticated and institutional investors. 

Several things to keep in mind:1) Financial institutions making these types of commercial loans usually assume 45-55% expense ratio to gross rents. 

For those I need to know the financial institution you're working with and I need to like the cut of your jib. 

They can think outside of the box and be more helpful than a lot of larger institutions.

This may be available through your local financial institution, but more commonly, this is a niche for private lenders.

@Maria Antonia A Silva Hard money lenders operate outside of traditional financial institutions so they actually don't have the same requirements.

4-8-20 units, basically anywhere with a decent population.  400 unit institutional grade properties, major metros with strong employment, population and rent growth forecasts.  

Any institution that offers non-recourse loans will do this.

Hello all,I've been trying to fund fix-and-flip investments that institutional lenders just can't do because of high leverage combined with higher loan amount.