Real Estate Investment Loans in Litchfield

Investment property financing is commonly used by borrowers as a temporary technique to obtain a commercial or residential investment property or to get refinancing for an existing investment. The right Litchfield investment property loan, with ideal terms and lending rates, can help real estate investors obtain their goals.

As a real estate investor in Litchfield in search of funding alternatives, you'd be interested to find out that investment home mortgages aren't just easy to get approved for, but are also fast closing. In contrast to banks, privately owned loan institutions tend not to frown upon approving a loan to a self-employed individual, particularly if the investment project can generate cash flow, and the borrower has proven experience in real estate management, in addition to a well thought-out project plan and the fiscal capability to handle the terms. Additionally, a deposit of some kind is going to be required, either in the form of cash or using equity within the property. Due to significantly less form-filling and paperwork in contrast to traditional bank financing, fast closing private real estate investment loans in Litchfield also give applicants an advantage over their competitors.

Real estate investors who have extra equity inside their real estate holdings can utilize it towards additional real estate ventures or to enhance their amount of working capital. By way of example, there was a husband-and-wife pair that acquired a bank-sold property for $600,000 in a trendy tourist area close by Lake Michigan. They invested $150,000 in transforming and renovating the house, and after that they turned it into a B&B rental and the appraised valuation went up to $1.2 million.

The total annualized revenue received from the property amounted to $120,000 per year. A bad credit score of 460 meant it was practically impossible to use a traditional bank to recuperate their personal investment of $150k. A real estate investor loan at 65% LTV with Island View Private Loan Fund (IVPLF) handed the couple $780,000 and made it so they could recoup their personal cash from the property.

Real estate investor loans are also effective for individuals who elect to perform a cash-out refinance to take equity out of their investment properties and use it for making down payments on other homes. Imagine someone purchases a distressed house in Litchfield and rehabs and flips it, but is unable to sell it off straightaway. His working capital is stuck inside this property, which means that he may miss out on numerous other investment possibilities. Most standard loan institutions, along the lines of a bank, will not say yes to a cash-out refinance if the applicant has not yet held the property for a minimum of 1 year. But IVPLF can approve a cash-out refi as much as 70% loan-to-value, as calculated by how much the house appraises for, even if the house is uninhabited.

IVPLF realizes that the financing needs of an investor in real estate are distinct from that of a typical home buyer. Your research for the right Litchfield real estate investment loan stops here. Fill out the contact form or call us and let's talk about what type of investment property loan is going to be ideal for the property or properties you have in mind.

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  • Investment property loans only please, no primary residences at this time.