Income opportunity for buy to rent investors
Greetings All,
I provide asset based loans and help investors with leveraging the equity in their properties sooner rather than later to grow quickly and take advantage of the rental market place. No tax returns required - bank rates/terms
As a buy to rent investor, you may look at the monthly cash flow first, but what about the appreciation of your equity?
Did you buy the property at a discount? Did you rehab the property to increase the value? If you did then your asset appreciated upon closing, and even more so after completing rehab. However you purchased the property - Maybe a bank owned foreclosure or maybe from a distressed homeowner, this created an investment opportunity that provided appreciation on purchase.
Growth of equity over time provides appreciation, but, when it's purchased at a discount the appreciation gain can be incredible and give you the opportunity to buy more property sooner rather than later.
At THG Capital, we can give you the option to leverage equity from your existing portfolio after owning the property for only 90 days. Leveraging your equity can provide a source of capital for future investments.
The main difference's between us and a traditional bank.
1. We offer 10 year fixed rate/ 30 year amortizations. In general, banks only lend up to 5yr/20 amortizations
2. We offer non-recourse loans - Banks only recourse
3. We do not require tax returns and do not look at your personal debts. We only care about the cash flow of the property - With banking, there is something called global debt service ratio that can kill a deal very quickly because personal debts are counted against you.
4. We allow 90 day value seasoning from the day you close. This will allow you to cash out based on fair market value with out waiting 12 months, therefore leveraging the equity to buy more property sooner than later - Most banks will not allow you to leverage the equity until property is owned for 12 months
5. We do not care how many properties you own, we can finance as many as you would us like to.
6. Minimum FICO 660 - Most banks 700 and higher
7. Cash out for anything - Most banks want to know where the cash is going to be spent
8. Minimum Debt Service ratio 1.2% NO Global Debt Service Ratio. We only look at the asset- Traditional banking count personal debts against you