| |
|
Article Directory :: Finance & Investment Articles
If you're are a real estate investor or are working with real estate investors, this may be the best news you've heard in years...
Almost every week I get asked this question. I get asked for a "Blanket Loan" that will cover 5 or more residential properties for an investor that wants to consolidate all his properties into one loan.
Until now, my answer has been - it is the White Elephant - doesn't exist. We have been looking for this loan for years. The problem is that it is more than 4 units which makes it commercial, but the properties are all residential, individually deeded which commercial guys can't touch or sell.
This is further complicated by the fact that the investor wants releases which would allow him to sell off a property if he gets a good price and the lender releases that property from the security - which again, no one wants to do.
Now there is a loan for investors for multiple residential properties (5 or more) where the total loan size is between $500,000 and $5,000,000. It can do fractured condos as well!
This allows the seasoned investor who owns 10 rental properties to put all the properties into one loan, which will free him up to start buying more residential properties again since all the existing loans in his name get paid off!
Better yet, it can close it in an LLC - which gives the investor added protection and less personal liability.
Investors can take all their properties into one loan. That frees them up to do more loans at FNMA rates since the properties will be under one loan in an LLC and may not even show on their credit at all.
Now here are the parameters: the investment properties MUST cash flow at 1.2 times. LTV's are 75%. Cash out is available but again, they must cash flow. Releases will be granted after the 3rd year. Credit score is not critical like stated but the credit can't be bad. Tax Returns don't need to show income because qualifying is totally based on property cash flow. This is a full doc deal. Now here is the really good news rates on this blanket loan right now are very good, around 7.125% fixed.
Remember, many Real Estate investors are paying hard money rates of 12 to 14% on some Real Estate deals, simply because they have too many properties. Now they can finance all of the properties on one large loan under an LLC and have their personal credit clean to obtain the best available financing for future purchases.
The other benefit is income, several real estate investors use cash out of their investment properties as their main source of income. This is a great way to go from a tax stand point, because they don't pay tax on borrowed money, however; from a lending stand point they don't show much in the way of income. With this type of loan the income from the properties is what qualifies them for the loan, not their personal income.
 EasyPublish™ this article - publishers click here
More articles by Brandt Stohr
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Direct Payday Advance Lenders Vs Indirect: Which is Better? (David Kamau)
Whether you have good credit or bad credit, a payday loan may be what you need. There are two basic types of this type of lender, direct and indirect. So, which is better? - Lucrative Trades in Forex - Finding the Right Forex Trading Software System (Wilson Trat)
Compared to trading stocks currency trading gives you big rewards. The main genuine advantage is that the sum of money you need to trade is extremely small. If you were ever going to get involved in forex trading, now is the time. However, you're going to have to find the right forex trading software system to be successful. - Creating a Budget that Works (Molly Wider)
Budgeting is about sacrificing, right? Wrong. Budgeting is about enjoying the results of a well planned financial strategy. If you think of budgeting as the ultimate cut-the-expenses experience, you'll never make it. Depriving yourself completely of indulgences is not something that will provide financial gain; at the contrary, it may very likely lead you to abandon your budget completely just out of frustration for lack of rewards. - Here's How Ordinary, Everyday People Are Making Money With Penny Stocks! (Grant Dougan)
One of my favorite investment types are penny stocks. Some investors stay away from these types of shares since they believe that they are risky. Don't let yourself be nervous though - you will earn incredible cash if you know how to find winners. - Daytrading Using Mean Reversion Strategies (Scott Cole)
Mean reversion is just another strategy that daytraders include in their arsenal when attacking markets on a daily basis. The opposite of the momentum type strategies, it is a good way for the daytrader to diversify and be able to find opportunities on a daily basis. - Fibonaccial Trading Techniques For Forex (John Eather)
Fibonacci was the great mathematician from Italy. He founded the new sequence of numbers and it was named after him called as fibonacci. The 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377,610 etc are the numbers of this sequence which has the starting of 0 and 1. Each number in this sequence is the sum of the preceding two numbers.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
