Real Estate Investor Loans
Investor loans are broken into three major types.
- Rental Loans: Intended for cashflow properties being held for multiple years
- Hard Money or Bridge Loans: Intended for a short time frame.
- Transactional Funding: Hard Money for a single day.
Long term loans generally have high qualifications and lower interest rates. Property cashflow is an important consideration. It’s rare to get a rental loan for more than 80% Loan-to-Value.
Even though the qualifications are higher, there are more flexible loans available. Of course, the more flexibility you seek the higher the costs and the interest rate.
Commercial Rental Loans will have the lowest rates and the highest qualifications.
Hard Money Loans
Hard Money Loans are high interest and costs. They are also very flexible. The highest qualification is the property itself. These are used for properties that don’t meet the qualifications for less expensive loan. Usually the property needs renovation, although sometimes it’s just because occupancy is low.
Hard Money is also good for short timelines. For example, when the seller offers a significant discount for a fast closing.
Private Money is sought by a lot of investors but true Private Money comes from people you know, not from a Hard Money Lender. We have a Private Money program that offers additional flexibility, however, the basic qualifications are similar to Hard Money.
Transactional Funding is used for deals where the buyer is immediately turning around and reselling the property. These loans are usually for one day, sometimes two.