Real Estate Investment Loans in Florida
Numerous real estate investors use investment property financing to obtain an investment property or to get refinancing for an existing home or building. Having access to Florida investment property loan solutions at the right time, with the proper loan conditions, duration and rate, will help real estate investors carry on down their path to financial success.
Investment home mortgages, since they are fast closing and easy to be approved for, give Florida real estate investors huge benefits. While most banks are reluctant to lend funds to a self-employed borrower, private lending firms have no issues approving financing, provided that the property has the potential to generate revenue, the applicant has done similar projects previously, and he provides a planned exit strategy and the fiscal capacity to meet the mortgage terms. The person will need to either be able to pay for a down payment or be ready to use the home equity within their property. Because privately held mortgage lenders generally require much less paperwork than banks and government bureaus, private real estate investment loans in Florida take a smaller amount of time compared with traditional loans and close fast.
Real estate investors who've built up excess equity inside of their real estate holdings can make use of it for further real estate purchases or to increase their working capital. By way of example, there was a husband-and-wife duo who acquired a bank-sold house at a cost of $600k in a trendy tourist destination on Lake Michigan. They performed renovations worth $150,000, and afterwards the home, which was being managed as a B&B, was valued at $1.2M as determined by a certified appraiser.
The property supplied a net income of $120,000 per year. Their below average credit score of 460 meant it was unlikely that a bank would help them get back their personal investment in the house by refinancing the existing mortgage. Island View Private Loan Fund (IVPLF) issued a real estate investor loan at 65% LTV, supplying the couple $780k, and allowing them to get back the cash they initially put into the scheme.
Real estate investor loans are moreover great for people who elect to do a cash-out refi to use equity from their investment properties for putting money down on additional investment properties. Suppose someone purchases a distressed house in Florida and rehabs and flips it, but is unable to sell it off quickly. With his capital tangled in this specific home, he ends up losing out on all kinds of other investment opportunities whose timing he can't predict. Traditional lending institutions, such as banks, require the borrower to have held the house for a minimum of 12 months. On the contrary, IVPLF is capable of doing a cash-out refi of up to 70% LTV according to the as-is price tag of the home as determined by a qualified appraiser, even when the house is empty and waiting around to sell.
As an investor in real estate, you need to have a lender who can fully grasp your unique funding requirements. Should you be in search of a loan company who understands your requirements and can present you with reliable information concerning your Florida real estate investment loan choices, you have found the ideal place. Complete the form on this page or get in touch with us via phone and let's discuss what kind of investment property loan would be ideal for your project.