Building a portfolio of multiple rental properties is almost always a challenge – albeit a rewarding one.
To be successful, you must cultivate an eye for finding the best possible opportunities and then securing them at the lowest price. Of course, that’s just the beginning. After purchasing a property, you then need to go through the process of renting it out and managing the investment year after year.
Nonetheless, for many investors, the biggest challenge remains securing a loan to begin with. Unfortunately, the more properties you add to your portfolio, the harder this tends to be. Many investors have to pass up otherwise amazing opportunities because their current portfolio would make it impossible to add another home.
The good news is that there is a solution: No-Ratio Loans for Investment Properties.
Are you an experienced real estate investor who wants to grow their portfolio by more than just a single property?
If so, you should know about one of the best lending solutions for that kind of venture.
With a blanket loan, you can secure numerous properties at once without the same inconvenience and overhead associated with multiple mortgages. Blanket loans offer a number of other unique advantages, as well.
When most people think about taking out a loan to purchase a property, they imagine a residential or commercial mortgage. This has been the standard for decades.
Yet, while this has become the most popular version for buying a property, investors often want to buy more than one at the same time. For example, many developers want to buy tracks of land all at once. Real estate investors often find multiple buildings for sale in the same area that they’d like to purchase at the same time.
In these situations, those parties could take out multiple mortgages – one for each property they wish to purchase – but, as many investors and developers have had to learn the hard way, that usually makes for a very cumbersome arrangement – to say nothing about how much money it wastes (more on that in a minute).
Instead, an experienced investor will almost always opt for a blanket loan. As the name suggests, a blanket loan covers multiple properties, allowing an investor to buy, hold, and sell each of them under the same financial agreement.
The investor also enjoys the convenience of making this arrangement through a single lender, instead of having to go through the process with many of them. This means they only need to concern themselves with one payment for one loan – ever.
These business-purpose loans almost always come from non-bank lenders. Generally, a blanket loan is used for buying between one and four properties. These can include:
However, they can be used to purchase many, many more.
Small apartment buildings and multifamily properties are currently offering up some of the best returns for investors. What financing options are there for investors seeking to add apartment buildings to their portfolios?
Smaller balance apartment buildings and multifamily properties are among the top property types for investors right now. After several years of giant funds chasing single family homes and larger commercial property deals in prime locations, smaller multi-unit properties can provide some of the most attractive deals for yields and growth.
In the past it hasn’t always been easy for real estate investors to find financing for small balance apartments. Lenders have preferred to put their capital into larger deals. Our new apartment building loan program changes that lender mentality with some of the most attractive rates offered in today’s market on a National level.
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The idea of continuous transformation makes humans innovative. For this exact reason, they purchase fixer-uppers. But are fixer-uppers always a good idea when it comes to cash flow real estate investing? We review here.
First, let’s find out what do we mean by “fixer-upper.” A fixer upper is a home that requires either minor or major rehabilitation before it can be used for its certain purpose. The repairs needed by a fixer-upper can vary from a coat of fresh paint to an entirely new roof.
A home inspector plays an important role in your buy-to-rent property purchase. Below are 10 important questions that you must ask a home inspector before hiring them:
The inspector should ensure that their inspection and inspection report will meet all your requirements and will comply with the code of ethics. You should be able to ask any questions and check if all the areas are inspected or not.
Real estate investment is considered as one of the best business practices one can make with their money. This year, general contractors have seen a jump in investing for single-family homes as compared to other types of real estate. The price of a single-family rental home looks more attractive for beginer investors and adds a great start to a portfolio or quick portfolio add-on.
It's no surprise why there are so many investment opportunities in this market, as home prices experienced a major drop in certain areas in Canada. Read on for benefits of investing in a single-family home:
South Carolina's warm climate, beautiful beaches and multitude of golf courses, has become the a retirement mecca of the mid-south. Rental home investors, retirees and second-home owners are in love with North Carolina's real estate affordability.
South Carolina's population is over 4.7 million and rapidly growing, with the tenth-fastest population growth rate in the nation at nearly 4.5%. Speaking of rates, our rates for South Carolina investment property are highly competitive, conact us today to learn more.
South Carolina has three profitable secrets for real estate. Consider a blanket loan from us when checking out South Carolina Investment properties, we also can help you get started with stated income loans. We are looking intensly at South Carolina as an investment property promised land. We think you will too.
Keep reading to discover what we think are the TOP 3 reasons to buy in South Carolina.
Hardcore real estate investors kept their eagle eye on various property deals to get the most out of their investment. For most of the real estate investors turned landlords, a foreclosure home is always a lucrative deal.
Reason being, they are cheap – the lower the price, the better deal a landlord gets. Foreclosure is a legal process in which a homeowner's right to its property are declared null due to failure to pay the mortgage and the property gets eligible for a foreclosure auction.
Since these homes are cheap as compare to other properties, landlords or property investors find it quite tempting. But, remember apart from some great opportunities, there are also some challenges associated with a foreclosure home. Have a look at a few challenges that you should look out for when buying a foreclosed home:
Rental real estate is one promising investment, featuring the dual advantages of rental income and long-term capital growth. However, as risk always comes with a reward, a real estate investor must be adequately protected from the unforeseen — with property insurance coverage.
If you think that finding a good tenant for your property will melt away all your troubles, think again. If you own a real estate property, you need to realize the unique risks you may face. And more importantly — how to shield against them.
Single family rental properties offer a number of advantages to the owner.
Generally, the time between when you acquire one and when you can begin renting is minimal – meaning cashflow begins ASAP.
Nonetheless, many provide great returns with low overhead and the promise of tremendous resale values.
However, the means by which you own one of these properties will have just as big an impact on your portfolio as the actual home itself.
That’s why most investors choose to use an LLC for single family rental properties.
Real estate investing has three primary vectors to increased profits, there are a few other niche avenues but for the most part, it boils down to these three points.
The three primary real estate profit venues:
The past year saw a dramatic rise in home flipping trend. Although over heated, analysts feel that 2016 is going to set new records in home flipping industry with more households joining the bandwagon. As per a research by Trulia, 5% of all home sales in 2015 came from house flipping.
Geographically, flipping varies a lot as per the property market. For example, Las Vegas witnessed high growth in house flipping whereas Detroit was placed at the bottom of the pile. Also, Florida areas are making entry into the flipping arena with zealous interest. Such markets also display a high number of investment property loans.
Historically, real estate agents consider house flipping to be a peak of a housing market. This can sometimes also signal over heating in the property realm. However, past year’s rise is nowhere close to the historic highs and instead show a steady increase that can be at most considered a healthy uptrend. Nationally speaking, it is well under control barring a few regions.
A decision that a landlords faces: Should I hire a property manager? Before answering this question lets first find out what exactly is property management. You will also learn about other related terms like landlord lender, what is a good cap rate and much more.
Landlords have to manage their real estate properties, and it is the management that decides how efficiently their business runs. They have an option to hire external help – for instance, property managers. Even so, it is still important to learn what a good property management involves in order to effectively distinguish a bad property management team from a good one.
Let’s take a look at this question from a different viewpoint: What does good property management mean?
Rental property owners or people investing in rental property are often surrounded by the thoughts whether they will be able to make considerable money through their rentals. Investing in rental property is different from other forms of investment, since it has a distinct ''human'' element involved.
Unfortunately, some investment property investors don't pay much heed to this element and fail to maintain rental property and make income from it. There is one person who can help landlords get out of the property maintenance fuss and guide about which tenant can easily absorb a rent increase that is - the property manager.
Property managers are not the most loved persons in rental property arena. Becoming a landlord is a tricky situation to be in especially if you are new to the job. Tenants and owners both have complaints against their property managers. But successful property managers pull off the job with a swift hand and make things click.
As you are becoming a landlord, you need to know what common problems people face and see how you can approach them. Here are 7 common problems that will help you get started.
Location. Location. Location.
Everyone knows that’s the most important consideration when buying a home.
The problem is that there are countless locations from which to choose.
Where do you even begin when it comes to such an important decision?
Well, if you’re looking to add a home to your rental portfolio, you have a huge advantage: in terms of location, all you care about is ROI.
What markets will offer you the best returns?
Fortunately, the top single-family housing real estate markets in the country will give you some very attractive options.
If this sounds familiar, it’s vital that you learn about Opportunity Zones right away. The aptly named legislation could be the best opportunity you have to add new, promising properties to your portfolio and enjoy an incredible tax break.
All over the country, there are communities suffering from severe economic limitations. To make matters worse, these areas have very little hope of ever making much of a comeback – at least not on their own.
This is why many of them have been designated as Opportunity Zones. Anyone who invests in their economic revitalization may be qualified for preferential tax treatment.
Opportunity Zones were created by the Tax Cuts and Jobs Act on December 22, 2017. They were largely seen as an attempt to provide relief to those populations that depend on community development programs and affordable housing – people who may not have otherwise benefited greatly from the tax cuts.
One reason to be especially hopeful that this new legislation will reach its desired goal is because it lacks an authorized cap on how much capital may be made available through these investments.
This means an estimated $2.2 trillion worth of unrealized capital gains derived from stocks and mutual funds could be funneled into community revitalization.
Instead of individuals and corporations bearing the full brunt of their federal tax liability, they can defer or reduce it based on the sale of appreciative assets. All they need to do is reinvest those gains into an Opportunity Fund, which leverages its pooled capital for the sake of real estate and small businesses in distressed communities.
Better still, each Opportunity Zone retains their designation for 10 years. So, investors have until December 31st, 2026.
Furthermore, any investors who hold onto their investments in Opportunity Zones for a minimum of 10 years will be eligible for an increase in the Opportunity Fund’s basis equal to the investment’s fair market value based on the date it has been sold.
Therefore, in short, the government will ease an investor’s tax burden on any stocks or mutual funds they sell if they put the money into Opportunity Zones.
Opportunity Zones exist in 18 different states, though some of these offer more locations than others.
These states are:
Opportunity Zones live up to their name for any investor who has stocks or mutual funds they’d like to offload without suffering the normal taxes for doing so.
In fact, many will most likely part with investments they had no intention of leaving simply so they can take advantage of a first-of-its kind opportunity.
One of the best examples of just how promising Opportunity Zones could prove for investors is rental properties. The legislation doesn’t put any limitations on using capital gains to fund investments in affordable rental housing.
As long as the residential real estate is located within an Opportunity Zone, it is fair game for investors. The only stipulations are that the property is:
Each of these is basically a given for any rental property inside of an Opportunity Zone, meaning savvy investors are facing a multitude of options at the moment.
Opportunity Zones are truly a unique opening for investors who want to own rental properties. There hasn’t been an opportunity remotely similar to this one since the New Market Tax Credit (NMTC) was crated back in 2000.
So, if you let this one pass you by, it could be another 20 years before you get another chance. Keep in mind, too, that the NMTC is limited by an annual allocation amount, which has been $3.5 billion per round of allocations in recent years.
Again, Opportunity Zones don’t have these kinds of limits. That’s why now is the time to take full advantage of this legislation.
If you’d like to transfer your gains directly into new rental properties, act now. Contact us today and we’ll walk you through the entire process.
Hoosier is the official demonym for a resident of the U.S. state of Indiana. The origin of the term was in general use by the 1840s, having been popularized by Richmond resident John Finley's 1833 poem "The Hoosier's Nest". Anyone born in Indiana or a resident at the time is considered to be a Hoosier. Indiana adopted the nickname "The Hoosier State" more than 150 years ago. "Hoosier" is used in the names of numerous Indiana-based businesses and organizations. "Hoosiers" is also the name of the Indiana University athletic teams. -Wikipedia
Overall, the 2016 investment rental housing market is looking great for Indiana and the country. Job growth is improving and other economic fundamentals are positive. Thus, consumer confidence should be high. 2016 should see the single-family housing market remain strong for both Indiana and the nation.
Indiana is very affordable in terms of real estate which makes it a solid addition to the portfolios of long term hold, income seeking investors.
Fastest Growing Population Centers
Indiana boasts some of the fastest growing population centers! Popular areas include Hendricks, Johnson Dearborn and Hamilton County. Fishers, IN has seen a 100% population boom since 2000.
Rental Home Financing originates commercial blanket loans with a commercial purpose and is not currently authorized to make such loans in all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). PRIVACY POLICY
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