Financing rates are higher and more volatile than any time...
Choosing the right financing tools is critical to maximizing returns on your real estate investments. For buy-and-hold rental portfolio investors, picking the right rental portfolio loan is essential to optimizing current cashflow while balancing your options for a sale or refinance at some point in the future.
Unfortunately, rental portfolio lenders don’t always make it easy. The huge variety and complexity of available rental portfolio loans – with different rates, terms, eligibility requirements, and even definitions – can require significant time and energy to make the right decision.
Let’s cut through some of the complexity, and help you gain an understanding of the rental portfolio loan market. Here’s what you need to look for when sourcing a loan for your rental portfolio.
A well-designed rental portfolio loan will allow you to:
To pick the right loan for your rental portfolio, first consider the following questions for your situation:
When experienced rental property investors approach lenders with their portfolios, they are very clear about their investment strategy and their key “asks,” or expectations. This allows them to get the best terms applicable to their specific needs.
The market today is flush with lenders — the challenge, as outlined before, is finding the right lender with the right products to help achieve your goals.
Banks and government sponsored entities such as Freddie Mac or Fannie Mae are often the starting point for borrowers looking for a rental portfolio loan. These institutions have a long track record of lending on conventional owner-occupied houses, but their lending on investor-owned rental properties is limited at best. Additionally, they use traditional underwriting processes based on your personal debt-to-income ratio, which can be cumbersome and slow moving compared to private lenders, and impose strict limits on borrower exposure.
In short, these loans are optimized for primary residences, and not for investor loans.
Rental investors want flexible loan solutions and a range of product options, not a one-size-fits-all approach that currently exists in the market. Haus Lending has specific loan types to match your rental portfolio needs. Our rental portfolio loan products are unmatched in the range of options we provide, and flexible to meet the specific needs of different rental property investors nationwide. We offer:
To begin a conversation about ways to boost the return on your investment and optimize value, connect with the Haus Lending team at firstname.lastname@example.org. Or call us at 1-877-GO-4-HAUS. Our experts are passionate about helping investors leverage the income opportunities available in the buy-and-hold rental property market.
Choosing the right financing tools is critical to maximizing returns...
Top 7 real estate terms you should know to build...