Real Estate Investment Loans in Kennebunk
Investment property financing is commonly used by investors as a short-term method to purchase a residential or commercial investment property or to get refinancing for a prior property. With the right Kennebunk investment property loan, in addition to favorable financing terms and lending rates, real estate investors can readily climb the success ladder.
Real estate investors in Kennebunk would be happy to learn that investment home mortgages, apart from being painless to qualify for, are in addition fast closing. While the majority of banks are reluctant to provide funds to a self-employed customer, privately held lending firms will not have a problem providing funding, assuming that the home or property has a strong likelihood of generating a profit, the borrower has done similar projects previously, and he offers a well thought out exit strategy and the fiscal capacity to meet the terms of the financing. The person should be ready to put a down payment on the property or unlock some existing equity. Since privately held lending companies usually need less paperwork compared with banks and government organizations, private real estate investment loans in Kennebunk don't take nearly as much time compared with conventional mortgages and close fast.
For many real estate investors, the preexisting equity locked within a home is often an easy way to get funds for upcoming real estate projects or to boost the overall level of capital available to them. For instance, there was a husband-and-wife couple that acquired a bank-auctioned property at a cost of $600k in a popular tourist destination on Lake Michigan. They performed renovations which set them back $150,000, and after that the home, which was being run as a B&B, was professionally appraised at $1.2M.
The couple generated $120k/year net off the home. But with a poor credit rating of 460, there was no chance they could work out a loan with a conventional bank to reclaim their $150,000 personal investment. However, Read Rock Capital (Read Rock Capital) managed to complete a real estate investor loan for them at 65% LTV, letting them take back the money they had personally dedicated to the property.
Real estate investor loans can also be a fine choice for people who would like to do a cash-out loan refinance to release their preexisting equity for various other purchases. Think about the circumstances of any person who purchases a fix-and-flip property in Kennebunk, performs the necessary renovations, but struggles to locate someone to buy it. With his capital trapped in this particular property, he ends up losing out on many other real estate investment opportunities whose timing he can't predict. Banks or other customary loan providers will not say yes to a cash-out refinance if the applicant has owned the home for under 12 months. But no matter if the property is unoccupied and waiting around for a buyer, Read Rock Capital can still administer a cash-out refinance of up to 70% loan-to-value of the as-is value of the premises.
As a real estate investor, you need to have a loan provider who can appreciate your various funding needs. Your quest for the ideal Kennebunk real estate investment loan ends here. Complete the contact form on this page or get in touch with us via phone and let's discuss which kind of investment property loan would be suitable for the property you have in mind.
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