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Numerous real estate investors make use of investment property financing to purchase an investment property or to get refinancing for an existing home or building. The proper Illinois investment property loan, with optimal conditions and rates, can help real estate investors accomplish their objectives.
As a real estate investor in Illinois in search of lending alternatives, you might be happy to learn that investment home mortgages are not just easy to get approved for, but additionally, they are fast closing. While many banks think twice about loaning funds to a self-employed borrower, private lending firms will have no problem authorizing financing, provided that the home or property has the potential to generate revenue, the person is an experienced real estate investor and manager, and he provides a planned exit strategy and the fiscal capability to fulfill the mortgage terms. In addition, a down payment of some sort is going to be needed, whether offered as hard cash or using equity within the property. In comparison to traditional banks, privately held mortgage lenders demand a smaller amount of paperwork, helping make private real estate investment loans in Illinois fast closing.
For many real estate investors, the preexisting equity in a property can be quite an easy way to get money for other impending real estate projects or to boost the overall level of money they have on hand. As in the story of a prior Island View client who purchased a bank-auctioned home in a touristy area on Lake Michigan at a cost of six hundred thousand dollars. They spent $150,000 on renovations, and afterwards put the property to use as a bed-and-breakfast providing short-term accommodations. It was then assessed at $1.2 million by a 3rd party appraisal professional.
The net annualized income made from the home added up to $120,000/year. A lousy credit score of 460 meant it was almost impossible to use an old-fashioned bank to recover their personal expenditure of $150k. A real estate investor loan at 65% LTV with Read Rock Capital (Read Rock Capital) handed the couple $780k and helped them recoup their personal money from the property.
Real estate investor loans are moreover effective for those who elect to perform a cash-out refinance to take equity out of their real estate holdings and use it for making down payments on additional properties. Consider when someone buys a distressed house in Illinois and renovates and flips it, but is not able to sell it right away. His working capital is trapped inside this house, due to which he may lose out on a number of other opportunities. Banks or other traditional loan providers will not agree to a cash-out refinance if the person has owned the house less than a year. But Read Rock Capital can approve a cash-out refinance of up to 70% LTV, depending on the appraised as-is value of the house, even if the property is uninhabited.
Read Rock Capital realizes that the funding needs of a real estate investor are distinctive from that of a typical home buyer. Your research for a suitable Illinois real estate investment loan stops here. Complete the contact form or give us a call to discuss what sort of investment property loan would be ideal for the project you have in mind.
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