Real Estate Investment Loans in Minnesota

Investment property financing is a solid option for real estate investors considering the purchase of an investment property or getting refinancing for an existing home or commercial building. The ability to access Minnesota investment property loan solutions at the proper time, with the right loan conditions, term and interest rate, can aid real estate investors to carry on down their road to achieving success.

As a real estate investor in Minnesota in need of lending alternatives, you might be happy to know that investment home mortgages aren't just easy qualifying, but are also fast closing. Privately held loan providers, contrary to virtually all banks, will lend funds to someone who is a self-employed borrower, assuming that the house can bring in revenue, and the applicant has experience in real estate management, and offers a clear-cut exit plan and shows the fiscal capacity to pay back the borrowed funds. The applicant should be willing to put a deposit on the house or utilize existing equity. In contrast to traditional lending institutions, such as banks, privately owned lending companies demand less forms and documents, helping make private real estate investment loans in Minnesota fast closing.

Real estate investors who have excess equity inside their real estate holdings can put it to use towards further real estate purchases or to enhance their amount of working capital. For example, a couple who lived near Lake Michigan in a tourist region bought a bank-owned investment property for $600,000. They put in improvements worth $150,000, and afterwards the property, which was being operated as a bed-and-breakfast, was professionally appraised at $1.2M.

The net annualized revenue made from the property added up to $120k/year. But with a poor credit score of 460, there was no chance they would be able to work out a loan with a traditional bank to recoup the $150,000 personal investment. A real estate investor loan at 65% LTV with Island View Private Loan Fund (IVPLF) gave the couple $780k and made it so they could recover their personal money from the property.

Those who wish to perform a cash-out refi to take advantage of the equity inside of their investment properties in order to buy additional properties can also choose real estate investor loans. Imagine an investor friend you know who purchases a property in Minnesota and repairs it and brings it up to date, but simply cannot sell it thanks to altered circumstances. His investment dollars are trapped in this home, due to which he may miss out on many other investment possibilities. Most normal lending companies, including banks, will not agree to a cash-out refi if the individual hasn't owned the house for less than 12 months. But IVPLF can authorize a cash-out refinance of up to 70% LTV, depending on the appraised as-is value of the house, even if the residence is uninhabited.

As a real estate investor, you should have a loan company who is able to fully grasp your various funding needs. Your search for a suitable Minnesota real estate investment loan stops here. Fill out the form on this page or get in touch with us via phone and let's talk about what type of investment property loan would be ideal for your property or properties.