Financing for rentals

8 Replies

I’m looking to buy some rentals.

I’ve flipped a number of homes using hard money but want something long term.

What are the best options? I'd prefer non conventional lenders and/or high LTV options

The best option is a 30 year fixed rate loan from a conventional lender. You can also try looking for private money, but that'll come with a higher interest rate  and less favorable terms than a conventional loan.

Originally posted by @Wesley Weber :

I’m looking to buy some rentals.

I’ve flipped a number of homes using hard money but want something long term.

What are the best options? I'd prefer non conventional lenders and/or high LTV options

 There are lots of non conventional options. Some hard money lenders offer buy and hold loans. Commercial lenders are another option. 

What are your priorities and why non conventional lenders? 

Why non-conventional?

1. More flexibility

2. Higher cash out LTV

3. Easier qualifying

4. Quicker closes

5. Longer amortization

More reasons?  Contact me.

Paul.

Originally posted by @Wesley Weber :

I’m looking to buy some rentals.

I’ve flipped a number of homes using hard money but want something long term.

What are the best options? I'd prefer non conventional lenders and/or high LTV options

You could consider a 30 year fixed, fully amortized HML. They have the advantages of other HMLs but also the disadvantages - namely points and higher interest rates.

Ours for instance do not come with rehab money. If that's required then an obvious course to take is a short term bridge loan with rehab money. Once rehab is complete, refi with, for instance, the above 30 year fixed.

Best wishes.

Well more than anything, I’d like to use the estimated gross rents to help qualify for the loans debt ratios ( that’s why non conventional) I’ve never had a Dti ratio looked at when flipping. I try to carry a lot of deductions and it lowers my agi.