Real Estate Investment Loans in Minnetonka

Investment property financing is a good alternative for investors thinking of purchasing an investment property or getting refinancing for an existing property. With the right Minnetonka investment property loan, along with optimal financing conditions and interest rates, real estate investors can quickly scale the success ladder.

Investment home mortgages, being fast closing and easy to be approved for, supply Minnetonka real estate investors with tremendous benefits. Private lenders, unlike virtually all banks, will loan money to an individual who is a self-employed applicant, provided that the investment can bring in cash flow, and the person has experience in real estate projects, and offers a well-defined exit strategy and shows the fiscal capacity to pay off the loan. The person will need to either be able to afford a deposit or be okay with working with the home equity in their property. Because privately owned mortgage companies generally need a lot less paperwork than banks and government organizations, private real estate investment loans in Minnetonka do not take as much time compared to standard lending options and close fast.

Numerous real estate investors make use of the equity within their real estate holdings as a means to acquire money for purchasing additional investment properties or to increase the stockpile of their on-hand cash. As in the story of a past Island View client who purchased a bank-auctioned home in a tourist destination next to Lake Michigan at a cost of six hundred thousand dollars. They invested $150,000 in improvements, and subsequently put the property to use as a B&B providing short-term lodging. It was then valued at $1.2 million by a third-party professional appraiser.

The couple generated $120,000/year net from the home. A weak credit score of 460 meant it was almost impossible to use a traditional bank to recuperate their personal expenditure of $150k. Island View Private Loan Fund (IVPLF) approved a real estate investor loan at 65% loan-to-value, giving them $780,000, and helping them retrieve the investment capital they initially put into the property.

Investors who would like to complete a cash-out refi to make use of the equity inside of their investment properties to buy additional properties may also opt for real estate investor loans. Imagine an investor buys a rundown home in Minnetonka and renovates and flips it, but is not able to sell it off right away. His funds are trapped within this house, which may cause him to lose out on numerous other business opportunities. Banks or other customary financial institutions are not going to consent to a cash-out refi if the borrower has held the house for under a full year. But IVPLF can approve a cash-out refi as high as 70% LTV, depending on how much the home appraises for, even if the residence is unoccupied.

IVPLF is aware that the capital needs of a real estate investor are totally different from that of a normal homebuyer. So in case you have been hoping to discover the ideal lender that can inform you of your options regarding Minnetonka real estate investment loans, look no further. Complete the form on this page or get in touch with us via phone to discuss what kind of investment property loan might be suitable for the property you have in mind.

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