Rental Loans

Rental loans are used to purchase turnkey rental properties or to refinance those you currently own. You can perform a rate and term or cashout refinance. There are several different loan structures such as a 30 year fixed rate, 5, 7 or 10 year adjustable rate.

Typically, private lenders can provide flexible terms based on FICO and property cashflow. These are low-document loans with no personal income verification required.

A rental portfolio loan allows real estate investors to refinance multiple properties into one loan. There are benefits to this approach – you pay one monthly payment to one lender, instead of multiple loans to multiple lenders, you can save on loan level processing costs and you can utilize one properties cashflow for another that may not be as strong to maximize loan terms.

By performing a cashout refinance you can pull out cash and equity from your property to reinvest. Typically private lenders take first lien and do not offer HELOCs or other similar structures.

There are a couple of main differentiators – conventional mortgages won’t tend to lend to LLCs, they report loans to the credit bureaus and they don’t allow more than several mortgages reporting on your credit report.

Private lenders are the vehicle to help you grow your portfolio. Rental loans typically close within 30 days, they only accept entities, and you can refinance multiple properties at once.