Guide To Real Estate Investor Financing Options
Glassridge offers several different capital options for our clients to utilize in order to maximize ROI. There are many different kinds of Financing Real Estate Investments, and we at Glassridge strive to provide people with the most efficient loans for their specific situation in a timely and professional manner.
Why invest in Real Estate?
The 19th Century American author Mark Twain has a famous quote, “buy land, they’re not making any more”. This is a somewhat comical view of it, but it expresses the importance and lucrativity of the Real Estate industry. There are many notable people who have acquired wealth through real estate ventures, so it’s no secret that it can be VERY profitable. However, having a detailed understanding of the industry is what separates those who thrive and those who fail. At Glassridge we have over 30+ collective years in the Real Estate Industry and we use this knowledge, along with our inside connections, to achieve the best rates possible for our clients.
What are the different types of real estate financing?
There are many different ways to invest in Real Estate,and Glassridge is your way to take part in this lucrative industry. Whether you’re looking to fix up a property and flip it, or buy it and hold it as rental property, or perhaps you’re in need of a blanket loan or transactional funding, Glassridge can provide you with a no nonsense approach to funding for any of these types of projects.
Real Estate Investment Financing Types
A Fix and Flip Loan is a type of Real Estate Investment in which an investor purchases a property or properties with the intention of renovating and then reselling them. Profit is generated from price appreciation that occurs as a result of a housing market that’s doing favorably and/or from rehabilitation and capital improvements.
A Buy and Hold Loan allows investors to purchase a property or properties with the intention of keeping it for an extended period of time, usually 15+ years, for the purpose of procuring monies from tenants through rent collection.
Portfolio Loans are a smart strategy for savvy investors. Essentially, a Portfolio Loan allows our clients to borrow against the portfolio of investments they have already made, in order to move forward with further ventures, or to refinance an existing Portfolio Loan.
Transactional funding is a form of short term, hard money lending. This type of capital allows our clients the opportunity to purchase a property with none of their own funds, given that an end buyer is already in place to purchase the property from them within a short time frame, usually 2-5 days.
Bridge Loans are a type of hard money funding used for short-term financing. Typically, a Bridge Loan has a term from one month to one year. Due to the increased risk of Bridge Loans, the rates are higher than loans from a traditional institution.
A Blanket Loan, sometimes referred to as a Blanket Mortgage, is capital used to fund the purchase of multiple pieces of real property. This strategy is preferred by builders and developers who buy large tracts of land, then subdivide them to create many individual parcels to be sold gradually one at a time.
A Cash Out Refinance is a transaction where an existing mortgage loan is refinanced and the new mortgage loan is for a larger amount than the existing mortgage loan, allowing the borrower to receive the difference in cash. This is primarily used by property owners who wish to liquidate some existing equity they have built.