Real Estate Investment Loans in Alabama

Many real estate investors utilize investment property financing to obtain an investment property or to get refinancing for an existing property. Access to Alabama investment property loan offerings at the appropriate time, with the proper loan conditions, duration and lending rate, can aid real estate investors to keep going on the road to achieving success.

As a real estate investor in Alabama looking for lending alternatives, you will be pleased to hear that investment home mortgages are not only painless qualifying, but additionally, they are fast closing. Unlike banks, private loan institutions will not pooh-pooh approving a loan to a self-employed individual, especially if the property or home will be able to create cashflow, and the individual has demonstrated experience in real estate management, as well as an exit strategy and the fiscal ability to handle the terms. The borrower should either be able to afford a down payment or be okay with using the equity within their property. Since privately owned loan providers ordinarily need much less forms and documents compared with banks and government organizations, private real estate investment loans in Alabama do not take nearly as much time compared to traditional mortgages and close fast.

Many real estate investors use the equity within their real estate holdings as a way to acquire cash to purchase more investment homes or simply to boost their on-hand cash. By way of example, there was a husband-and-wife pair who acquired a bank-sold house for $600,000 in a popular tourist area near Lake Michigan. They spent $150,000 on transforming and renovating the residence, after which they turned it into a bed-and-breakfast rental and the appraised valuation went up to $1.2 million.

The home produced a net cash flow of $120k per year. Their substandard credit score of 460 made it improbable for a bank to aid them in recuperating their personal investment in the property by refinancing the previous loan. A real estate investor loan at 65% loan-to-value with Island View Private Loan Fund (IVPLF) handed the couple $780k and made it so they could recover their personal cash from the property.

Those who want to perform a cash-out refi to utilize the equity in other investment properties in order to buy additional properties can also go for real estate investor loans. Suppose an investor buys a distressed home in Alabama and renovates and flips it, but is not able to sell it off quickly. With his capital caught up in this particular project, he winds up missing all kinds of other real estate investment opportunities whose timing he cannot predict. Most normal loan institutions, along the lines of a bank, are not going to agree to a cash-out refi if the borrower hasn't owned the home for a minimum of a year. But even when the property is vacant and sitting around for a buyer, IVPLF can still do a cash-out refinance up to 70% LTV of the as-is value of the premises.

IVPLF realizes that the capital needs of an investor in real estate are completely different from that of a normal home buyer. Should you be looking for a loan provider who is aware of your requisites and can supply you with reliable information concerning your Alabama real estate investment loan choices, you have come to the right place. Enter your info into the contact form on this page or give us a call to discuss which kind of investment property loan might be ideal for the property you have in mind.