Why investors choose long-term rental property
The goal of real estate investing is to create a positive cash flow, whether its short bursts of large ROI with fix and flips or smaller amounts of money over long periods of time with rental property. Investors that decide to buy property and hold it as an income-producing asset are looking to set themselves up for long-term financial success. Generating passive monthly income through several rental properties at the same time is an excellent way to create a steady cash flow that compounds with the growth and appreciation of the rental portfolio.
ABL strives to provide rental investors with the most competitive rates and leverage, so we brought our term rental loans in-house to lower borrower costs and deliver the five-star service that we are known for. With deals closing in 30 days on average and our document-lite approach, we make the rental loan process quick and easy for all experience levels. We currently offer our rental loans in the following states: CT, FL, MA, MD, NJ, NY, PA, RI, VA, and Washington DC. If you are a real estate investor that wants to invest in long-term rental property using our rental property financing, contact us today.
ABL rental loans for BRRRR investors
As mentioned above, our long-term rental loans are meant to help investors using the BRRRR strategy or otherwise accumulating rental units. The acronym stands for buy, rehab, rent, refinance, and repeat. The investor purchases a property and renovates it to increase its market value and raise the monthly rent price. After finding a tenant to fill the property, the investor then refinances their loan and uses the newly acquired capital to fund their next rental property purchase to repeat the process. This BRRRR investment is a straight-forward approach that has risen in popularity due to the passive income it generates and the scalability of the investment portfolio.
ABL is constantly paying attention to market trends and borrower interests to better serve real estate investors. As investors ourselves, we wanted to create a term rental loan program that could provide the most reliable rental property financing for BRRRR investments in the industry. We make sure to provide fast and flexible loan options, so investors never miss out on an opportunity due to timing. If you’re an investor that wants to use our rental loans to start or continue the BRRRR method, contact us today.
ABL finances local investors with rental property financing
When it comes to long-term rental loans, you need a lender that understands the local real estate markets and can properly assess a property’s ability to generate income. Our team of experts follows market trends and partners with the best local appraisers, attorneys, and title agents to ensure our borrowers are receiving the most fair and competitive pricing. Every loan is unique, but our rental loans typically offer:
- Rates as low as 3.75%
- Max LTV up to 80%
- 1-4 Units, Townhomes, Condos
- Cash Out, Rate & Term, Purchase Options
- 30 Year, 5/1, 7/1, 10/1, and IO options
- Single loan cap of $3M , portfolio loan cap of $6.25M
ABL has hundreds of verified five-star reviews and proudly repeats business with half of our borrowers. When it comes to competitive rental loans for real estate investments, no team does it better than Asset Based Lending. Call us at 201-942-9089 to begin your rental loan approval process today.
What are the benefits of rental property financing through Asset Based Lending?
There are multiple benefits to using ABL for your rental property loans.
- There is no 1 size fits all approach here. We have a variety of rental loan programs available, and will choose the option that best fits your needs. This includes a no income verification rental loan, a max LTV program, a lowest rate program, etc.
- If you are purchasing a new property that you hope you keep for rental income, ABL will help you quickly secure the purchasing and renovation funds. A typical term loan could take several months to close, but ABL will close the hard money fix and flip loan in just a matter of days.
Are these hard money rental loans?
The long-term financing for your rental property is not a hard money loan. For projects with a purchase and rehab component, the initial loan will be a hard money fix and flip loan with a cash out refinance exit strategy.
What are the typical terms of a rental loan takeout?
While all loans are different and structured to meet the individual investor’s needs, the typical rental loan is a 30 year fully amortizing loan with rates between 3.75%–8%. LTVs typically range from 80%–80%, with an average DSCR requirement of 1.2 (although lower DSCR programs are available).