Viewing entries tagged how transactional funding works Subscribe to feed

The Investment Property Mortgage Landscape in 2015

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 26 March 2015
BestTransactionFunding

What does the mortgage landscape look like for investment property loans in 2015?

While Bloomberg Business notes that mortgage underwriting is becoming “incrementally easier” in 2015, the feds have opened up the gate to begin raising interest rates. These factors will have some impact on real estate investors as they evolve and grow. But for now the most important question remains “what loans are available for financing investment properties?”

Transactional Funding

Best Transaction Funding continues to fill the gap for property wholesalers. It provides 100% financing for quick flips. Normally without any of the credit, income, or asset demands of other loan types.

Find out how transactional funding works here

Hard Money Loans

Best Transaction Funding will soon be funding hard money loans from 1M+ (minimum) for select, serious, and experienced real estate investors with solid deals.

Hard money loans offer asset based financing for those deals and transactions that don’t fit the transactional or conventional loan model. They provide fast funding, without the hassle of traditional investment property loans from conventional banks and lenders. They can be great for new acquisitions, rehabbing, and refinancing.

Blanket Mortgage Loans

A variety of new blanket mortgage lenders and loan programs have emerged over the last two years. These programs can help investors with bulk property purchases, may act as bridge loans to unlock pent up equity in existing portfolios, and may streamline overall debt financing for buy and hold investors.

Private Money

Private individuals continue to be keen to put their money to work in real estate deals. For now they can offer better terms and easier lending than conventional lenders. The downside can be the extensive amount of work and time required to line up these relationships and financing. There may also be a substantial pivot in this trend as other lenders become more competitive in 2016 and beyond, and as they can obtain high yields from CDs.

Leveraging IRAs

Tapping IRAs and other types of retirement accounts to fund real estate deals has become increasingly promoted among the investment community. Self-directed IRAs do have great advantages. They can even be used in tandem with private money, transactional lending, and hard money. However, investors should recognize that touching the proceeds of these transactions might hamper their tax benefits. Highly active flippers should also consult their tax professionals to see exactly what the tax ramifications are for them.

Conventional Lenders

Traditional banks and mortgage lenders still have a lot of catching up to do. This is particularly true when it comes to LTV, paperwork burden, and speed. More exotic loans are making a comeback, but these lenders are rarely of benefit to most investors in the current market.

Summary

Investment property financing is still plentiful for those that know where to go, and work with the best lenders for their investment strategy. Whether, and how fast main street banks will be to catch up will be to be seen.

Make sure on our email notification list for first to know of new loan programs and features!

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

Rate this blog entry
2 votes