Multifamily real-estate investing strategy, how to use bridge loans - Business Insider

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Bruce Fraser outperformed the S&P 500 by nearly 286% as a hedge fund manager before he became a full-blown real-estate investor. Here's the strategy he's using to multiply his over 1600 multifamily units

. "I ran a successful hedge fund through some of the most trying economic times that most people can remember, including the financial crisis, or The Great Recession as they now call it."coming from a mile away. He knew the implications of a housing crash would be widespread and was able to sidestep the worst of the mayhem.

During his time at the hedge fund, which would eventually morph into a registered investment advisor, Fraser dabbled in real-estate investing, buying and selling properties with a partner. When the dust finally settled from the housing crash in 2010, Fraser formed Elkhorn Capital Partners and put an emphasis on multifamily investments.

"We're underwriting everything for income," he said. "We want to make sure it can derive a significant portion of its return from the cash flow that we expect to distribute from that property.""I knew I wanted to be in income properties," he said. "I just liked the risk profile of that and the steady nature of it."Fraser specializes in.

Although bridge loans carry higher interest rates, Fraser says that advantages include interest-only payments and additional funding for capital expenditures.

 

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