Are you an investor considering purchasing a rental property but unsure where to start? Or have you done your research and realize that it takes a quite a bit of money to begin? We know that rental loan programs may not be easy to find, but we have the ability to work with you on this type of financing if you are in the market for such an investment, so reach out to our team and we can get started working with you today.
Whether you are a seasoned investor or just getting started, we want to work with you to make sure you are getting the information and help that you need to fund your project. Being a successful investor takes a lot of money and sometimes that money doesn’t come with the best rate especially if you are a new investor. But if you are thinking of investing in a rental property, that cost is quite a bit more than you would find with a fix and flip home that just needs some maintenance.
One of the reasons that long term rental programs are harder to find is that traditional banks don’t generally fund those types of loans due to the risk or if they do they have an impossibly high interest rate. They generally will take a while to get the loan approved in the first place, and when it comes to investment properties, the faster they are secured, the faster they can be turned into a profitable project and start generating cash flow.
Once you’ve submitted all the paperwork and get approved for a rental program loan, you will have to agree to the terms of the loan. The interest rate will be set by the market that falls in line with the prime lending rate at the time of loan. You will also need to keep up with providing proof to the lender that you are on track financially with statements or similar documentation.
Although most investors are used to securing short term loans, long term rental financing is an option for projects that are large with multiple units as they are obviously going to take more time to renovate and get back on the market. Long term financing is needed if there are extensive timely repairs that need to be done or there is an extended period of time between when the building will be purchased and when it can start generating money.
Contact Us Today
Choosing to invest in a property, especially a large one that will be used as a rental property is a rather big decision. The time, money, and energy that it takes to complete a project on just one home can be underestimated, so when it comes to larger multi-unit property, you want to make sure you have done a lot of research before getting started. We would be more than happy to help out by answering questions about the process so feel free to reach out to KC Investor Funding in Kansas and Missouri today!