Real Estate Investment Loans in Hammond
Investment property financing is widely used by investors as a temporary method to acquire a residential or commercial investment property or to get refinancing for an existing property. Having access to Hammond investment property loan solutions at the appropriate time, with the right loan conditions, duration and interest rate, can aid real estate investors to carry on down their route to success.
Being a real estate investor in Hammond in need of financing options, you'd be happy to hear that investment home mortgages are not only easy to qualify for, but additionally, they are fast closing. Although most banks are reluctant to lend capital to a self-employed borrower, private financing companies will have no issues granting financing, provided that the home or property has a strong likelihood of generating a profit, the borrower has experience investing in and running real estate projects, and he provides a well thought out exit strategy and the fiscal ability to satisfy the mortgage terms. The person must be willing to put a deposit on the property or home or utilize preexisting equity. In contrast with conventional lending institutions, such as banks, private lenders ask for a smaller amount of forms and documents, making private real estate investment loans in Hammond fast closing.
For a lot of real estate investors, the preexisting equity in a property can be quite an easy way to raise funds for other impending real estate projects or to improve the overall level of capital they have on hand. As in the story of a previous Island View client who bought a bank-auctioned home in a touristy area on Lake Michigan for six hundred thousand dollars. They did some improvements that cost $150,000, and afterwards the home, which was being run as a bed-and-breakfast, was valued at $1.2M according to a qualified appraiser.
The net annualized cash flow derived from the property amounted to $120,000/year. A weak credit score of 460 meant it was practically impossible to work with an old-fashioned bank to recuperate their personal investment of $150k. Read Rock Capital (Read Rock Capital) granted a real estate investor loan at 65% LTV, providing them $780k, and allowing them to unlock the money they put into the project at the outset.
Real estate investor loans are also a fine solution for individuals who would like to do a cash-out loan refinance to release their existing equity for other purchases. Suppose an investor buys a rundown home in Hammond and fixes and flips it, but is unable to sell it off right away. With his capital stuck in this specific property, he ultimately ends up losing out on many other real estate investment opportunities whose timing he can't predict. Banks or other traditional loan providers won't agree to a cash-out refinance if the borrower has owned the home for less than a full year. Conversely, Read Rock Capital is able to do a cash-out refi as high as 70% loan-to-value based on the as-is valuation of the property as calculated by a certified appraiser, even though the property is empty and waiting to be sold.
At Read Rock Capital, we understand that your needs as a real estate investor may vary dramatically. If you are in search of the right lender who is able to inform you of your various options about Hammond real estate investment loans, your search is over. Enter your info into the contact form or give us a call and let's discuss which kind of investment property loan might be ideal for your project.
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