Investment property financing is a great choice for investors shopping for an investment property or getting refinancing for a prior property. With the proper Paterson investment property loan, together with suitable financing conditions and rates, real estate investors can readily climb the success ladder.

Real estate investors in Paterson would be happy to know that investment home mortgages, apart from being easy to be approved for, are in addition fast closing. Privately owned loan companies, unlike most banks, will provide money to a self-employed applicant, provided that the investment project is able to bring in cash flow, and the borrower has experience in real estate management, and has a well-defined exit strategy and displays the fiscal ability to pay back the money. The borrower needs to be willing to put a down payment for the house or make use of preexisting equity. In comparison with conventional banks, privately held mortgage lenders require a lot less paperwork, helping make private real estate investment loans in Paterson fast closing.

Real estate investors who may have excess equity inside of their properties can put it to use towards additional real estate purchases or to increase their working capital. For example, a married couple who lived close to Lake Michigan in a tourist region purchased a bank-owned investment property for $600,000. They invested $150,000 in remodeling, and subsequently put the property to use as a B&B providing short-term lodging. It was then assessed at $1.2 million by a third-party professional appraiser.

The home produced a net cash flow of $120k/year. Their substandard credit score of 460 meant it was much less likely for a bank to help them get back their personal investment in the house by doing a refi on their previous mortgage loan. A real estate investor loan at 65% loan-to-value with Read Rock Capital (Read Rock Capital) handed the couple $780,000 and helped them recoup their personal cash from the project.

People who would like to do a cash-out refi to make use of the equity inside of other homes to invest in more properties can also opt for real estate investor loans. Suppose someone purchases a rundown house in Paterson and rehabs and flips it, but is not able to sell it off right away. With his cash trapped in this particular house, he ends up missing numerous other real estate investment opportunities whose timing he cannot predict. Typical lenders like banks necessitate the individual to have owned the property for one year. However, Read Rock Capital is able to do a cash-out refi all the way to 70% loan-to-value based on the as-is price tag of the house as confirmed by a certified appraiser, even though the residence is vacant and waiting to be sold.

At Read Rock Capital, we know that an individual's wants and needs as a real estate investor can vary greatly. Your quest for the best Paterson real estate investment loan ends here. Fill out the form on this page or give us a call to talk about what kind of investment property loan would be ideal for the property or properties you have in mind.