ASSET BASED LENDING VS TRADITIONAL BANKING RENTAL PROPERTY FINANCING
Greetings All,
We offer rental property financing for residential investment properties nationwide - No tax return required or personal debt to income counted against you. Bank rates/terms.
We make “asset-based” loans, which means we evaluate the cash flow of your rental property rather than your personal debt to income ratio.
Our typical client owns 5 or more units, and has been turned down by the bank due to insufficient income shown on their tax returns. We make it simple to qualify and use a common sense approach to approving your loan. Personal debts do not count against you.
Currently we have a 5 unit minimum - $300,000 loan minimum, and individual loans with a value of $100,000 - $75,000 loan minimum
Additionally, we offer non recourse bridge to term and fix n flip lines of credit for both the buy/hold investor and/or flipper. The bridge to term line can be used to acquire and rehab properties and then be termed out to our long term debt program, making it convenient for the investor, as they do not have to shop around for end loan financing. This is a on-stop shop option. Both lines start at 1M.
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