Investment property financing is frequently utilized by investors as a short-term strategy to buy a residential or commercial investment property or to get refinancing for a previous property. With the right Massachusetts investment property loan, in addition to favorable financing terms and rates, real estate investors can easily move up the success ladder.
Being a real estate investor in Massachusetts seeking financing options, you'll be happy to know that investment home mortgages aren't only painless qualifying, but are also fast closing. Privately owned loan providers, contrary to a lot of banks, will give money to someone who is a self-employed applicant, assuming that the property will bring in a reliable income, and the applicant is experienced in real estate management, and has a clear-cut exit plan and displays the financial capacity to repay the borrowed funds. The applicant should be willing to put a down payment on the property or unlock some existing equity. Due to a lesser amount of form-filling and documentation as compared with regular bank loans, fast closing private real estate investment loans in Massachusetts also give people an advantage over their competition.
Real estate investors who've built up extra equity inside their real estate holdings can put it to use towards further real estate purchases or to enhance their amount of working capital. For instance, there was a husband-and-wife pair that acquired a bank-sold house at a cost of $600,000 in a well-known tourist spot on Lake Michigan. They invested $150,000 in renovations, and afterwards put the property to use as a bed-and-breakfast offering short-term lodging. It was then appraised at $1.2 million by a third-party appraisal professional.
The couple generated $120k per year net off of the home. But with a low credit rating of 460, there wasn't any way they would be able to work out a loan with a regular bank to reclaim the $150,000 personal expenditure. Yet, Read Rock Capital (Read Rock Capital) managed to complete a real estate investor loan for them at 65% LTV, letting them free up the capital they had personally invested in the project.
Those that want to do a cash-out refi to make use of the equity in their investment properties to buy more properties may also go with real estate investor loans. Picture an investor friend you know who purchases a home in Massachusetts and remodels it, but simply cannot flip it due to changed circumstances. With his capital stuck in this specific house, he winds up losing out on numerous other investment opportunities whose timing he cannot predict. Most standard lending companies, including banks, won't agree to a cash-out refinance if the individual has not owned the home for a minimum of a year. But Read Rock Capital can grant a cash-out refi as much as 70% loan-to-value, as calculated by the appraised as-is valuation of the property, even if the house is unoccupied.
As a real estate investor, you should have a loan company who is able to appreciate your distinct funding requirements. Should you be trying to find a lender who knows your requisites and can present you with reliable information concerning your Massachusetts real estate investment loan options, you've come to the ideal place. Fill out the contact form on this page or call us and let's talk about what type of investment property loan would be ideal for your project.