A number of real estate investors take advantage of investment property financing to purchase an investment property or to get refinancing for a current investment. With the right Detroit investment property loan, in conjunction with suitable financing terms and interest rates, real estate investors can quickly climb the ladder of success.

As a real estate investor in Detroit looking for lending alternatives, you'd be interested to hear that investment home mortgages are not merely easy qualifying, but in addition are fast closing. While the majority of banks are reluctant to lend money to a self-employed client, privately owned lending firms have no problem granting a mortgage, so long as the house has the potential to generate revenue, the person has working experience investing in and managing real estate projects, and he provides a well thought out exit strategy and the financial ability to satisfy the terms of the financing. The borrower must be prepared to put a deposit towards the house or unlock some preexisting equity. With a lesser amount of form-filling and documentation in contrast to regular bank financing, fast closing private real estate investment loans in Detroit also offer people an advantage over their competitors.

Real estate investors who may have extra equity inside of their real estate holdings can make use of it for additional real estate ventures or to increase their working capital. As in the case of a previous Island View client who bought a bank-auctioned property in a tourist town on Lake Michigan for six hundred thousand dollars. They put in improvements that cost $150,000, and afterwards the property, which was being managed as a bed-and-breakfast, was valued at $1.2M as determined by a licensed appraiser.

The home provided a net cash flow of $120k per year. A bad credit score of 460 made it nearly impossible to work with a traditional bank to recover their personal investment of $150k. A real estate investor loan at 65% loan-to-value with Read Rock Capital (Read Rock Capital) handed the couple $780k and made it so they could recover their personal cash from the project.

Real estate investor loans are also good for those who choose to perform a cash-out refi to take equity out of their investment properties and use it for making down payments on other properties. Imagine an investor purchases a rundown house in Detroit and renovates and flips it, but is unable to sell it off right away. With his cash tangled in this particular project, he ultimately ends up missing numerous other investment opportunities whose timing he cannot predict. Banks or other traditional financial institutions won't say yes to a cash-out refinance if the person has owned the home for less than 12 months. But regardless of whether the property is unoccupied and waiting for someone to buy it, Read Rock Capital is still able to administer a cash-out refi up to 70% loan-to-value of the as-is valuation of the premises.

At Read Rock Capital, we understand that an individual's needs as an investor in real estate may vary dramatically. If you have been hoping to discover a suitable lender that can inform you of your various options regarding Detroit real estate investment loans, your search is over. Submit the contact form on this page or get in touch with us via phone to discuss what sort of investment property loan will be ideal for the project you have in mind.