Investment property financing is commonly used by real estate investors as an interim technique to buy a residential or commercial investment property or to get refinancing for a current property. The right New Albany investment property loan, with optimal provisions and lending rates, can assist real estate investors in accomplishing their objectives.

Real estate investors in New Albany might be happy to hear that investment home mortgages, besides being easy to qualify for, are in addition fast closing. As opposed to banks, private loan institutions don't pooh-pooh authorizing a loan to a self-employed borrower, particularly if the investment project will be able to generate revenue, and the individual has proven practical experience in real estate management, in addition to a well thought-out project plan and the financial capability to fulfill the loan terms. In addition, a deposit of some sort will be required, either by means of cash or utilizing home equity within the property. In comparison to traditional lending institutions like banks, privately owned mortgage lenders demand significantly less forms and documents, helping make private real estate investment loans in New Albany fast closing.

Many real estate investors use the equity within their real estate holdings as a means to obtain cash to buy more investment homes or simply to boost the stockpile of their on-hand cash. By way of example, there was this husband-and-wife pair that obtained a bank-auctioned property at a price of $600k in a popular tourist destination near Lake Michigan. They did some improvements for $150,000, and afterwards the property, which was being managed as a bed-and-breakfast, was professionally appraised at $1.2M.

The home supplied a net income of $120k/year. Their below average credit score of 460 meant it was improbable for a traditional bank to help them recover their personal investment in the home by refinancing their existing loan. A real estate investor loan at 65% LTV with Read Rock Capital (Read Rock Capital) handed the couple $780,000 and made it so they could recoup their personal money from the property.

Real estate investor loans are moreover effective for individuals who select to do a cash-out refinance to use equity from their investment properties for making down payments on other homes. Imagine somebody who acquires a property in New Albany and remodels it, but can't flip it due to altered circumstances. With his capital trapped in this specific home, he ends up missing out on many other real estate investment opportunities whose timing he can't predict. Most ordinary loan institutions, including banks, will not approve a cash-out refinance if the individual has not held the property for less than 12 months. But no matter if the property is unoccupied and waiting for someone to buy it, Read Rock Capital can still administer a cash-out refi of up to 70% LTV of the as-is valuation of the premises.

Read Rock Capital is aware that the funding needs of an investor in real estate are totally different from that of a regular home buyer. Your search for the ideal New Albany real estate investment loan ends here. Submit the contact form on this page or give us a call to discuss what type of investment property loan is going to be most suitable for your property.