lending companies for real estate investors - for real estate investors. learn about the lending...

Download Lending Companies for Real Estate Investors -   for Real Estate Investors. learn about the lending companies that exist specifically for real estate investors ... Investor Lending Companies Pros and Cons

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  • Lenders for Real Estate Investors

  • learn about the lending companies that exist specifically for real estate investors

    what they are how they can help investors with financing why they might be a good option

    Lesson

    Agenda:

  • What is a lending company for real estate investors?

  • These are companies who lend only to real estate investors

    (rentals, flips, commercial, new construction)

    Lending Companies for Investors

  • They are not the Bank of Americas or BBTs that we typically see as the

    traditional banking institutions

  • These companies exist to lend to investors and have different guidelines

    and underwriting processes than a traditional bank

  • While traditional banks have bank guidelines and federal guidelines they

    must follow when qualifying and underwriting loans

    How they are different than traditional banks?

  • these lending companies underwrite each potential new loan based off of

    the cash flow it produces (not the income)

    How they are different than traditional banks?

  • When you take out a mortgage with a traditional bank they are qualifying you based off of your personal income vs.

    your person debt.

    For example

  • They are qualifying and underwriting the loan more as a business based off

    of the cash flow it will produce

    With these lending companies

  • Lets see an example of terms

    -limaonecapital.com

    http://limaonecapital.com

  • Lets see an example of terms

    -financeofamerica

  • If you have issues qualifying based off of personal income and debt-to-income ratios with a traditional

    bankthis may be an option for you

    Why would you use one of these lending companies?

  • If youve reached your max number of loans that you can hold with traditional banks (10) and youre still looking to use financing to acquire propertiesthis

    could be an option

    Why would you use one of these lending companies?

  • Investor Lending Companies

    Pros and Cons

  • Pros

    Enables you another option to obtain financing when

    you cant get it from a bank

  • Pros

    No limit on how many loans you can have

  • Pros

    Underwrites the loan based off of cash flow not

    personal income

  • Pros

    Allow you to purchase new properties or cash out

    refinance current properties

  • Cons

    Youll have a higher interest rate than you would with a

    traditional bank

  • Cons

    You may have to have an LLC for them to lend to you

    (some, not all)

  • Cons

    Will require a minimum loan amount

  • The reality is that it does give another option for investors to take advantage of when it comes to

    financing

    Conclusion

  • There may be some more flexibility with one of these lending companies than a traditional bank as they keep the loans in house and dont have the red tape requirement hoops like big banks.

    Conclusion

  • Offer various loan products for investors (rentals, flips, new construction, etc.)

    Conclusion