Real Estate Investment Loans in Milford
Investment property financing is used by real estate investors as a short-term strategy to purchase a residential or commercial investment property or to refinance a previous property. With the proper Milford investment property loan, along with ideal financing conditions and interest rates, real estate investors can readily climb the ladder of success.
Investment home mortgages, being fast closing and easy qualifying, provide Milford real estate investors tremendous benefits. Private loan companies, as opposed to a majority of banks, will lend money to an individual who is a self-employed applicant, provided that the investment can bring in revenue, and the borrower is experienced in real estate undertakings, and provides a clear-cut exit plan and demonstrates the fiscal capability to repay the mortgage. The borrower will need to either have the funds for an advance payment or be ready to make use of the equity in the property. As compared with conventional lending institutions, such as banks, private lenders require less forms and documents, making private real estate investment loans in Milford fast closing.
Lots of real estate investors use the equity locked within their real estate holdings as a means to generate funds to purchase more investment properties or purely to give a boost to the cash they have on-hand. As in the story of a past Island View client who bought a bank-owned piece of real estate in a touristy area on Lake Michigan at a cost of six hundred thousand dollars. They invested $150,000 in remodeling, and subsequently put the property to use as a bed-and-breakfast offering short-term accommodations. It was then valued at $1.2 million by a third-party appraisal professional.
The property produced a net cash flow of $120k/year. A bad credit score of 460 meant it was nearly impossible to utilize a regular bank to recover their personal expenditure of $150k. Yet, Island View Private Loan Fund (IVPLF) was able to complete a real estate investor loan for them at 65% LTV, enabling them to take back the cash they had personally used on the house.
Investors that want to perform a cash-out refinance to take advantage of the equity in other properties to purchase more properties can also go with real estate investor loans. Imagine an investor friend you know who acquires a property in Milford and remodels it, but can't sell it due to altered circumstances. His working capital is trapped within this home, which means that he may miss the chance for numerous other investment possibilities. Most ordinary loan companies, along the lines of a bank, are not going to say yes to a cash-out refi if the applicant hasn't owned the house for at least 12 months. On the contrary, IVPLF will do a cash-out refi of up to 70% LTV based upon the as-is valuation of the property as determined by a licensed appraiser, even though the residence is vacant and waiting around to sell.
IVPLF realizes that the lending needs of a real estate investor are distinct from that of an ordinary home buyer. In case you are trying to find a suitable lender who is going to inform you of your options concerning Milford real estate investment loans, your search is over. Enter your info into the form or give us a call to discuss what sort of investment property loan would be ideal for your project.