Rental Property Financing in McKinney
Most real estate investors realize that purchasing a rental home, should it be a condo, a duplex, a triplex or a fourplex located in a very good community, can be a sure-fire means to make extra money every month. Though a handful of individuals are able to shell out cash to purchase their properties, another possibility is to get a rental property loan in McKinney. But if you are self-employed or possess a weak credit score, it may be hard to get a conventional lender like a bank to approve financing for your upcoming purchase. And most banks employ a rather long loan application and approval process, which could hinder the likelihood of closing on a successful transaction, particularly when the sellers are seeking a fast closing. Thankfully, there are other means to procuring a mortgage loan for a rental property.
Many real estate investors opt for a rental home loan in McKinney from private lenders to pay for their new investment rental property or to refi a preexisting loan. As a substitute for the person's source of income or credit score, these loans, which have shortened time frames of 6 to 36 months and lending rates beginning at 10%, are usually determined by the particular home's capacity to bring in regular cash flow, a third-party valuation of the property, and sometimes, the borrower's understanding of rental property management. Simply speaking, the easy qualifying and fast closing McKinney rental property loans from private loan companies can help you take full advantage of every lucrative prospective real estate deal heading your way.
Take the circumstances of the independent realtor from South Carolina who came to Read Rock Capital, aiming to buy a single-family home making use of rental property financing. The type of her employment dramatically reduced her possibility of being eligible for a bank loan, despite the fact that she maintained a remarkable credit score and was prepared to pay 30% towards the deposit. But, she realized that the investment opportunity was far too lucrative to miss out on. Once she got into contact with Read Rock Capital, the 30% deposit and a positive rental market evaluation worked to her advantage and helped her obtain the funds she needed to finalize the deal successfully.
Many real estate investors also complete a cash-out refi on existing properties and assets to appropriate the equity in them for an additional purchase or to pay back some other unpaid debt. Read Rock Capital in the past had a client who had paid off a rental condo. He was a self-employed individual and had failed to make a payment on his credit card bills in over 30 days. A cash-out refi, aided by the rental profits via the condo going towards the new mortgage payment, made sure that he would be capable of paying off his existing debts as well as getting some breathing space.
Selecting the right McKinney rental property mortgage lender who recognizes your business needs and the broader context of real estate investing is a vital step to a successful purchase decision. Fill out the contact form or give us a call, and let's discuss your property or properties.
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