What Sort of Funding is Available
for Real Estate Investors?
If you are new to the real estate investment game, you might think the most straightforward way to fund your projects is through a loan from a bank, credit union or mortgage company. However, seasoned investors know that there are so many other avenues of funding for real estate investors, including ones that require no credit score, no tax return and no waiting!
What we’re talking about is private investor hard money loans. These are short-term loans that provide financing for real estate investors without all the red tape of traditional loans.
Consider this: You find the perfect property for your portfolio. It’s the right size, the right location and has the potential to make you a great return. You may be able to put in an offer before you apply for a mortgage or a bank loan, however that doesn’t stop another ambitious investor from swooping in with a cash offer. If you were the one selling, which would you prefer?
Our lenders work so fast that their funding is as good as cash. This way, you can close the deal and focus on your investment instead of waiting around and missing out.
Of course, investment property loans are not one-size-fits all, so normally you’d have to do a lot of legwork to find the best lenders for real estate investors in your area. This can be even more tedious if you are looking for a loan that requires no tax returns, income verification or credit score. That’s where we come in. Total Capital Network matches investors with lenders that have the best loans for them. If you are looking for a no tax return investor loan, we have lenders ready to work with you. Need financing that doesn’t factor in your credit history? Our investor friendly lenders are happy to help.
Here’s what you need to know about the investment property loans our lenders have to offer:
• These are asset-backed loans, which means the amount of financing you qualify for will depend on the value of the property in question.
• These are short-term loans, typically with terms between 6-24 months.
• These loans can be used for the acquisition, renovation, construction, expansion and refinancing of any type of real estate, including residential, commercial and new build investments.
• These are the best loans for individuals or businesses who need to work fast.
Depending on what type of real estate you invest in, you may seek out and qualify for different types of real estate investor loans. These include:
Residential Hard Money Loans
These loans are used to purchase, renovate, build and expand on non-owner occupied residential buildings, including single and multi-family homes, mobile homes and vacation rentals. They are also used to acquire properties for a fix and flip investment.
Fix and Flip Loans
These loans are specifically for the acquisition and renovation of properties for fix and flip investing. Unlike residential hard money loans, fix and flip loans usually have a high loan-to-value (LTV) ratio, meaning you can get more funding from the lender and pay less out of pocket.
Commercial Hard Money Loans
Like residential hard money loans, this type of financing is asset-backed, so it relies on the value of the property and not the investor’s financial history. These types of loans are used for commercial investments such as apartment buildings, mobile home parks, retail properties, office buildings, and storage units.
In addition to these loans, you may also require funding for other investment scenarios. In these instances, our lenders can offer the following loans:
New Construction Loans
These require a little more paperwork and money up front than other asset-backed property loans, since the asset in question is still in the works. While most lenders are happy to finance new construction projects, they usually require a larger down payment from the investor, as well as a project and building plan complete with a budget and timeline.
These are the best loans for investors who are coming up short for an ongoing project, or for those waiting for another longer term loan to come through. Bridge loans can help you add value to your property to get it where it needs to be, or to cover unexpected or time-sensitive building or property costs.
Refi or Cash-Out Refi Loans
This type of loan allows you to refinance a current loan on a property you already own to get a better rate and then use the difference to reinvest in that property or purchase a new one.
As you can see, there are many different types of loans available for the savvy real estate investor. Before you apply for any of them, here’s what you will need:
Property- Since many of these are asset-backed loans, you won’t be able to qualify without a property in mind that you want to purchase, refinance or renovate. In the case of new construction loans, you will need land and a building plan in place of existing real estate.
Down Payment- While many investors will offer as much as 90% of the required funds, some alternative form of financing will likely be needed to get you to 100%. This might be money from your own pocket, from another lender, or from a partner or 2nd lien holder.
A Loan Amount- Before getting matched with one of our lenders, you should have a general idea of how much financing you will need. Crunch some numbers and find a figure to get you started. This may end up being an estimate, but it’s better to know ahead of time if you need a few thousand dollars or a few million.
Credit Score- Our lenders will work with any type of real estate investor, no matter the credit score, however in order to match you with the right lender, you should have an estimate of your score. This way, we can pair you up with a lender who is okay with that score and you don’t have to waste your time with lenders who will only work with investors who have high credit scores.
With these things in mind, the next step is getting paired up with the perfect lender for you. Simply fill out our quick and easy form with some of the above information and we’ll connect you with 1-2 lenders who are ready to work with you now.
Our lenders will get a little more information from you regarding the property and present you with an offer and terms. If you are happy with their offer, you can expect your funding in a few days. This straightforward system of pairing up investors with the right lenders and getting them the funding they need is what makes Total Capital Network stand apart from other methods of securing investment funds.
Don’t waste time and energy chasing funding from disinterested lenders or high maintenance financial institutions. Get the real estate loan you need today!