Why Brokers Are Doubling Down on Multifamily Rentals in 2025

The real estate market is undergoing significant changes. As interest rate cuts are set to stoke buyer activity, investors too will be looking to take advantage of conditions to make new acquisitions. One constant has remained unchanged throughout these market fluctuations, however, and that’s multifamily property. Aside from offering healthy monthly income, these properties provide owners with appreciation and significant tax benefits, making them a smart move for any investment strategy. The brokers and lending partners who understand the benefits of these properties, and can highlight their advantages to their clients, will be able to capitalize on the increased activity that’s set to come.

Read on as we discuss the factors contributing to increased demand for rental properties and the strategies brokers can use to position themselves for success with this asset class.

Market Drivers Behind The Boom

There are several factors contributing to increased demand for multifamily properties. The first of which is the housing affordability crisis; many would-be homebuyers are instead choosing to rent for long periods of time, pushing monthly rent averages up and increasing demand across the board for rental housing.

Next is the arrival of interest rate cuts. The fed already announced its first interest rate cut of 2025, which led to a spike in mortgage refinance applications, and with two more cuts expected before the end of the year, demand for real estate is only expected to continue.

Finally, investor sentiment towards real estate has begun to recover. 33% of rental property investors believe that market conditions have recently improved (compared to only 17% in the previous quarter), while 40% believe that conditions will improve over the next 6 months.

Why Brokers Are All In

Multifamily lending also provides brokers with many benefits. It’s often easier to finance a multifamily property, especially when working with a private lender, because they often have much better cash flow and cap rates than their single-family counterparts. The higher property values that come with these deals also mean better commissions for lending partners. Additionally, the investors who specialize in multifamily are often repeat borrowers, who either seek out refinance loans to utilize the equity they’ve built, or just acquire new properties outright. This presents a great opportunity to establish lasting relationships with these borrowers, thus opening the door for repeat business.

Lending Landscape: What’s Changing in 2025

The lending landscape in 2025 looks quite different than it did just a few years ago. Wholesale lenders now offer technology that enable brokers to underwrite smarter and faster, including educational platforms that help bring partners up to speed on multifamily program specifics. Lower rates have also enabled these lenders to offer programs with higher leverages and more flexible terms than ever before. Many of them now provide loan products tailored to larger multifamily deals, which allows brokers to expand their offerings. Be sure to talk to your chosen financing partner about the full suite of products and technology they provide to help supercharge your lending business.

Broker Checklist for Multifamily Success

Here’s a quick checklist to set you up for success in multifamily lending:

• Know Your Market: Take the time to research property trends, vacancy rates, and the demographics in your lending markets. This helps you make insights that others might miss and allows you to make better recommendations to your clients.

• Master the Lending Products: Partner with lenders who offer a variety of rental property loans including DSCR programs, bridge financing, and multifamily specific options.

• Build Your Investor Network: As the saying goes, “your network is your net worth”. Leverage your existing client base and make use of social media to promote your multifamily offerings and expand your reach.

• Leverage Tech Tools: Utilize modern platforms that streamline underwriting, deal tracking, and marketing efforts.

• Stay Educated: Attend industry events, webinars, and lender training sessions to help you stay sharp. Many wholesale lenders offer educational resources to get their broker partners up to speed, and often at no cost.

Strategies That Help You Win

There are also key strategies you can utilize to boost your multifamily pipeline. Sharing data-driven insights with your clients positions you as an expert in the asset class and builds trust which often leads to repeat business. Posting these insights on social media, or sharing similar info such as deal finds, also helps you build a strong brand which can gain you new clients.

Most importantly, however, is partnering with a trusted lender that can empower you to provide the best service to your clients. A quality lender will not only have a variety of loan programs on offer, but also be able to provide you with free resources & marketing materials that help you be more effective with your lending efforts.

RCN Capital

In order to maximize the returns on your clients’ investments, partner with a lender that can provide you with the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors and lending partners. If you are looking to offer rental property financing to your clients, RCN Capital has competitive loan options and an award-winning broker referral program available to partners.