Rental Property Financing in Colorado

All real estate investors understand that purchasing a rental home, whether it's a condominium, a duplex, a triplex or a fourplex in a very good area, is many times a sure-fire strategy to bring in additional money every month. Even if some investors might be able to shell out cash to purchase their homes, there's also the alternative to apply for a rental property loan in Colorado. Yet, a horrible credit score or the lack of a normal, salaried occupation — like being self-employed — will make it hard for you to find conventional types of financing. Furthermore, with speed having the role as an essential factor in most real estate transactions, you'll also want a fast closing rather than the usual 6-12 weeks it will take for a traditional bank loan approval to be issued. The good news is that there are other methods for getting a mortgage loan for a rental property.

A large number of real estate investors take out a rental home loan in Colorado from private financial firms to fund their new investment rental property or to refi a preexisting loan. Instead of the person's income or credit score, these kind of loans, which come with reduced durations of 6 months to 3 years and rates starting out at 10%, are often judged by the particular home's capability to bring in steady cash flow, a 3rd party assessment of the place, and sometimes, the person's experience in managing rental properties. Colorado rental property loans aren't only easy to be eligible for, but are additionally fast closing — meaning that you do not have to let another investment fall through your fingers while you wait for a bank to say yes to your loan.

Take the situation of the independent real estate agent from South Carolina who reached out to Island View Private Loan Fund, wanting to invest in a single-family home using rental property financing. Even though she maintained an excellent credit score and was able to put 30% towards the house, being self-employed with irregular income meant typical funding options were out of the question. Nevertheless, she could not stand to leave behind this excellent investment opportunity that could make a huge contribution towards guaranteeing a solid financial future. Aided by the considerable down payment and favorable rental market analysis, IVPLF didn't have any difficulty giving her a private home loan to help her profit from this great investment opportunity.

Being an investor, it's also possible to do a cash-out refinance on one of your existing houses to reclaim equity in them to utilize for other purposes. IVPLF in the past had a customer who had clear and outright ownership of a rental condominium. He was a self-employed freelancer and more than a month past due on his credit card obligations. A cash-out refinance was exactly the right thing for him because it not only helped him work out his high-interest credit card obligations, but additionally, gave him a breather from his predicament, since the rental income from the condo covered his new loan payment.

Half the battle is won as soon as you have located the right Colorado rental property mortgage lender for your upcoming purchase. Submit the contact form on this page or get in touch with us via phone, and let's talk about your property or properties.