Investment property financing is a solid alternative for individuals considering the purchase of a new investment property or refinancing a prior property. With the proper Hays investment property loan, in conjunction with favorable financing provisions and rates, real estate investors can easily move up the success ladder.

Real estate investors in Hays will be very happy to learn that investment home mortgages, besides being easy to be approved for, are also fast closing. In contrast to banks, private financing companies will not frown upon the approval of a loan for a self-employed individual, especially if the house will be able to generate a profit, and the individual has demonstrated experience in real estate management, together with a well thought-out project plan and the financial means to fulfill the loan terms. The borrower will need to either have funds available for a down payment or be okay with utilizing the home equity in the property. In contrast with conventional finance companies, such as banks, privately owned lending institutions ask for a lot less paperwork, making private real estate investment loans in Hays fast closing.

For a number of real estate investors, the preexisting equity in a property or home can be a good way to get funds for other impending property purchases or to increase the amount of money they have on hand. Such as the story of a past Island View client who purchased a bank-owned piece of real estate in a touristy area on Lake Michigan at a cost of six hundred thousand dollars. They did some improvements worth $150,000, after which the property, which was being managed as a B&B, was evaluated at $1.2M according to a certified appraiser.

The total annualized cash flow derived from the home added up to $120k/year. But having a low FICO score of 460, there was no way they would be able to obtain a loan with a traditional bank to recoup their $150,000 personal investment. A real estate investor loan at 65% LTV with Read Rock Capital (Read Rock Capital) gave the couple $780,000 and made it so they could recover their personal investment in the home.

Real estate investor loans can also be an excellent option for individuals who want to do a cash-out refinance to release their existing equity for other types of ventures. Look at the case of a person who purchases a fix-and-flip property in Hays, does the needed renovations, but is unable to find a buyer for it. With his capital trapped in this house, he ultimately ends up losing out on all sorts of other real estate investment opportunities whose timing he cannot predict. Most ordinary lending institutions, such as a bank, will not approve a cash-out refi if the borrower hasn't owned the property for less than 1 year. However, Read Rock Capital is capable of doing a cash-out refi up to 70% loan-to-value based on the as-is valuation of the home as established by a professional appraiser, even when the residence is vacant and waiting to be sold.

Read Rock Capital realizes that the capital needs of an investor in real estate are distinct from that of a normal home buyer. If you're looking for a lender who is aware of your expectations and can give you straight answers concerning your Hays real estate investment loan options, you have arrived at the right place. Enter your info into the form on this page or get in touch with us via phone and let's discuss which kind of investment property loan might be suitable for your property or properties.