By K2 Capital | August 14, 2025 | Cash flow assignment loan, multifamily, capital access without refinancing
Plenty of multifamily owners are in the same spot right now. The property is cash flowing, occupancy is strong, and the senior loan carries a rate locked during a much lower interest rate environment. Refinancing that debt makes no sense.
But capital is still needed. Maybe it is a new acquisition, a partner buyout, capital improvements, or just portfolio-level liquidity. The constraint is not the asset. The constraint is that the existing mortgage is too good to replace.
A cash flow assignment loan solves that without touching the senior loan.
We work with a capital partner that lends against the assigned cash flow of stabilized, performing multifamily properties. The loan sits behind the existing senior mortgage and is secured by the property’s income stream. No refinance. No disruption to the existing loan.
Recent Example
A multifamily investor owned a stabilized 84-unit apartment property in the Southeast. Occupancy was above 95%, and the property carried a fixed-rate agency loan at 3.82% with several years left on the term.
The sponsor needed capital for another acquisition but was not going to give up that rate. We introduced the cash flow assignment lender, and the investor accessed $1.2 million in liquidity from the stabilized asset while leaving the senior mortgage in place. Combined leverage stayed conservative, fully supported by the property’s cash flow.
The capital went into a new acquisition. The original property continued operating under the same financing structure, untouched.
How It Works
The loan is typically structured as a short-term, interest-only facility with a one to two year term. The borrower assigns the property’s net cash flow to the lender as collateral. Repayment comes through a future refinance, property sale, or portfolio recapitalization.
For multifamily owners sitting on low-rate debt, this is one of the most practical ways to access capital without giving anything up.
If this sounds like a fit for your situation, submit a request with some additional context. We will review it and determine whether this capital aligns with your portfolio.
| Criteria | Details |
|---|---|
| Loan Size | $500,000 to $3,000,000 per property |
| Leverage | Maximum approximately 75% combined LTV including existing senior debt and cash flow assignment loan |
| Term | One to two years, interest-only |
| Minimum Interest Period | 12 months |
| Collateral Position | Subordinate to the existing senior mortgage; secured by assignment of property cash flow |
| Target Assets | Stabilized multifamily properties with at least twelve months of operating history |
| Borrower Profile |
Professional multifamily operators with at least three years of operating experience Meaningful portfolio scale |
| Use of Capital |
Property acquisition Capital improvements Portfolio expansion |
If this sounds like a fit for your situation, submit a request with some additional context. We will review it and determine whether this capital partner aligns with your situation.