Rental real estate has become an increasingly popular strategy in the last few years. More people are opting to rent rather than own and the advantages are incredible. Investing in rental properties can allow you to retire, supplement or replace your income and quit your job, spend more time with family, friends, traveling and having fun. For many investors, how to achieve your investment goals has been very difficult often do to a lack of financing.
Since the market correction, it has been very difficult for investors to finance investment properties whether residential or commercial. Banks are very reluctant to fund an investor who has more than four mortgages and even a second loan is quite difficult. This severely restricts investors from growing their portfolio with many of the incredible deals out there today. This problem has been solved, it has been solved with the resurfacing of Portfolio Loans, alternatively called Blanket Loans.
A Portfolio or Blanket Loan allows investors to purchase multiple properties under the same loan. Investors can even refinance existing properties, purchase more, cash out refinance and do all three under one loan. They are very flexible and very investor friendly. Furthermore, rates are often extremely low, credit is not as important and loan amounts often go up to 80% of purchase. If you are investing to build cash flow, portfolio blanket loans are for you. When compared to a cash purchase, it is not uncommon to increase your cash on cash return by over 5% by obtaining a portfolio loan. Additionally, appreciation on 3-4X as much property is an enormous extra bonus as are the tax advantages.
Here are some highlights of the portfolio blanket loan program:
+ Cash out refi allowed
+ No limit on properties owned
+ No seasoning required
+ Residential or Commercial properties
+ Rates 3.75% to 13% fixed
+ Amortized 15 to 30 yrs
+ 1 to 5 points typical depending on loan size and credit
+ Term 5 to 30 yrs with option to extend
+ 600 min credit score, lower on a case by case basis
+ $200K min loan amount, no max
+ 65-80% LTV
+ May be used to purchase a portfolio and/or refinance
+ Non-Recourse available
+ Some are assumable
+Multiple funding sources for loans best suited for you
To learn more, click the button below.