Stated income loans are making a big comeback for commercial real estate financing After years of tight credit markets commercial real estate funding is flourishing again. Many have been sitting on the sidelines waiting for more lenient loan programs to return. Now they are here!
Stated income loans are a vital part of the real estate industry, and the economy. Now that they are returning the effects may not only brighten the finances of individual investors, but the wider market as well.
Stated income loans allow borrowers to qualify for real estate financing, without having to jump through all of the paperwork hoops, hassles, and time drain of full documentation underwriting. This not only provides investors speed and efficiency advantages, but can be an absolute necessity. Many experienced and savvy property investors have sat on the sidelines because they don’t want to deal with the inefficient complexities and quirks of income documentation. Others, who are self-employed, are full time investors, those who have complicated finances or advanced tax sheltering vehicles in place simply can’t verify income thoroughly enough. That ironically even spread to former Fed chairman Ben Bernanke, when even he couldn’t qualify to refinance his own home.
As stated income and other expanded qualification loans roll out and spread we should expect many more seasoned investors return to the market, while firms expand their acquisitions.
Each year is a new journey, it’s time to choose your paths and where you’re heading. It’s time to choose who you’re going with, how you’re going and when you’re going, we want to be there with you to help in that success.
Choose to experience beautiful twilights and incredible trips, and to smile spontaneously. Choose to cultivate friendships, and spend time among good friends. Choose to love, constantly and abundantly, and may this never be too little. Because every good choice we make deserves to happen someday.
As this year draws to a close, we at Rental Home Financing would like to wish you a Happy New Year and thank you for your patronage over the years. Our company would not have been this successful had it not been for the support that we have been provided with by our most prime assets – our customers.
We anticipate that the coming year will bring with it more in terms of mutual success. Rental Home Financing is committed to providing you with exceptional services and we will do our best to keep our service standards high in the next fiscal year as well.
The rental housing in the Indiana real estate market market has been growing fast in the past 3 years. Real estate agents are selling homes now faster than ever seen. Our highly competitive rates, plus the improving job markets and recent expansion of flexible lending requirements for blanket mortgage loans has Indiana property the best since 2006.
The increase in Indiana home buying has led to a shrinking supply. This is leading to a robust market providing rental home investors the best accumulative values not seen since the last peak a decade ago. New blanket loans for investors helps ensure the pace.
Future Investor Profits Look Great
There’s still plenty of demand from renters and buyers on the in search of a home. The low supply and high demand means your rental and resale profits continue to grow.
Demand for real estate continues to push forward and it's economic foundations remain strong. We agree with most forecasts for the upcoming year expecting expecing continued growth in the real estate markets for investors
Data for the locations where homes are in most demand are provided in the chart below. The data is ranked by montly progress by realtor.com, not yearly so keep that in mind. For example, Oregon has a huge housing demand growing from the influx of people from california, on a yearly progress chart would surely make the top.
What current investment property loan, development, and media trends are impacting urban and suburban real estate? Where are the opportunities? How can investors take advantage of them?
2016 Real Estate Trends
There are a number of significant trends influencing the direction of the market, and where the profits are this year.
Investing in property is an art, seldom mastered by only a few. Managing a successful rental portfolio is not as easy as its seems on the surface. Sometimes, investments backfire and you have to quickly get rid of them to save your entire portfolio. People can go under sooner than they think and often end up in a lifetime of debt. As gloomy as it may sound, if done correctly, there is nothing more rewarding than real estate investing.
Professional investors work their way through complex property loans to achieve success. If this is something you aspire to become, here's a comprehensive guide to investing in real estate the right way.
Where Should I Be Investing?
Buy-to-Rent returns are showing buying more affordable than renting in 66 Percent of Markets. Potential buy-to-rent profits increased thanks to rental rate growth outpacing home price growth from a year ago. Some location returns increased to nearly 60% over the previous year.
What locations had at least a 59% increase in buy to rent potential for 2015? The best locations for With a 2015 average range of 3% to almost 27% gross rental yeild depending on location, our question now demands more attention. The average individual average is around 9% but who wants just average results when it comes to investments.
The key to success in the rental property investment business is keeping the tenants happy. If your tenants are happy, they are more likely to spend more time in your rental home. It takes a good amount of time and effort to finding and retaining good tenants, and if you have found an ideal match, you want to ensure that they stay (and, pay!).
Finding the right balance between performing your job correctly and keeping the tenants happy is not always easy. Your goal to pay off your quicker can go haywire, if the rental setup doesn't work as expected.
Below are the tips to help you get started:
Are you adding more properties to your rental portfolio? If so, you can take advantage of the rental income to qualify for a new mortgage. You can get great deals on mortgage depending on the gains or losses from your rental property income and the tax returns you filed recently.
In order to achieve favorable credit, you can make use of close to 75% of the rental income depending on your past record.
Here are some tips to secure a mortgage if you are :
Rental home loans are always a murkier place especially for newbies. When it comes to mortgage for rental homes, finding the right deal with affordable interest rates in the long run is akin to finding needle in a haystack.
Your best bet is to be thoroughly prepared before you start down this path.
From an impressive credit score to maintaining the right cash reserves, there's plenty of advice for you.
Here are 6 ultimate ways to make sure you grab the best deal out of plethora of :
Securing a great mortgage deal for an investment property is a daunting task. Before you step down the path, it is important to reserve some cash to impress your prospective lender. Remember, good credit score means a happy lender, so make your credit history strong that a lender cannot refuse your mortgage application.
It is strongly recommended doing extensive research on mortgage financing before . Try to develop a healthy relationship with a reliable lender to obtain rental property loans without any hiccups. Remember, lenders consider a mortgage for investment properties to be riskier than for residential property. So, if you are considering , make sure you keep in mind a few important factors that include:
If you think it is easy to secure a business loan for rental property, you are highly mistaken. Investors need to know that investment property loans are different from typical home mortgage. For lenders, these loans are considered as a great risk and they take the risk only when it seems worth taking. Here in this guide investors will understand how investment property are different, how to qualify for this type of loan and from where to get the best deal.
Investors invest in investment property since it gets extra income to the wallet and helps pay off the debts. When purchasing an investment property you need a loan. The can also be used for refinancing an existing investment, or for real estate development. The mortgage rate and terms depend up on your credit history and these two factors will determine your monthly mortgage payments. There are basically two types of investment property loans: Residential & Commercial.
Pricing on homes are on the increase and intrest rates remain low, does that mean we should buy, sell, and or hold on new investments? The quick answer is YES, be smart and you can do well with your rental home loans.
Low interest rates are attracting buyers to rental real estate and prime locations are being purchased quickly making prices rise in desireable areas. 85% of metro areas have seen a rise in single-family home prices in the first quarter of 2015 with predictions of continued growth in America. - source: National Association of Realtors.
Although interest rates remain low, financing is not as easy as it used to be; tightened credit requirements are making it more challenging to secure loans for investment properties. However, with the right preparation and information, getting business loans for rental property can be eaiser than anticipated.
Many good options exist for single-family residential rental investors in different U.S. counties. It is now possible for a savvy real estate investors to get double-digit returns and rents that escalate more than 10 percent a year. According to a report released by RealtyTrac, about 20 markets have the potential to deliver returns that soar more than 15% and many over 20% during Q1 2015.
According to a recent report that analyzed U.S. single-family housing data, there are many good options available for single-family residential investors. It is estimated that single-family residential rental properties will bring in an average return of 9.05% during this year's first quarter, but 20 individual markets show the possibility of returns that soar more than 15%.
The real estate market is unpredictable. But, if you are one of those optimists who believe that the prices will go down, you can surely think of starting out your career as a landlord. Remember, all investments fluctuate in value over time.
As a landlord, you should not be concerned about short-term fluctuations in a long-term investment.
Following are some tips to get started:
Navigating the tough waters of tax laws in USA can be tricky especially if you are a landlord. If you are a landlord, it is important that you know the type of expenses you can deduct for your rental property to help you reduce your taxable income, which eventually reduces your tax liability. Here are the top tax deductions for landlords.
The depreciation expense applies to those things that you have bought for your business which have a useful life even after the current tax year. Here are the three rules to calling something depreciable:
1. Expected to last for more than one year.
2. Provides value to your business in some way.
3. Becomes invaluable or wears out over time.
Extract The Maximum Dollar from Your Blanket Loans
By Extracting Maximum Space from Your Rental Homes
Being a landlord, it is solely your responsibility to make your tenants feel like home on the rental property. They should enjoy their new space. Landlords and tenants need to be a little creative in order to maximize the living space. Look for places where you would be able to stow your stuff easily, no matter how limited the storage space may be.
Have a look at some storage ideas to reduce clutter and create a place where everything can be stored without any hassle.
What to know:
Nearly everyone knows it - real estate investing can give you a promising financial future! However, just because real estate investing has a reputation for delivering great returns and building wealth does not mean that all property investments are the same.
The key to getting great returns lies in understanding the basics of what makes a great investment and how to buy the best real estate.
This article will help you navigate through the clutter by offering you important things you must understand before you buy your first investment property.
Better investing doesn't just happen accidentally. Good investors work it out full-time. They research, learn and understand the latest market trends in the rental industry of USA. Regardless of how much landlord experience you have, remember that the competition in the rental property market is fierce.
From big investors to newbies, the number of investors seeking rental property at good locations is soaring day by day. Here you will find some tips that will help you enhance your skills to be a better rental property investor and always stay ahead of your competition.
A blanket mortgage is type of rental property lending that allows the purchase of multiple parcels of real estate under the shade of a single mortgage. The finance of all the properties is taken as collateral by the creditor. During the release clause, the integrity of the mortgage can remain unharmed if one or more real estate parcels within the blanket are sold. For example, if an investor acquired a blanket mortgage to purchase six buildings and sold two of them, he/she would still maintain the blanket mortgage for the remaining four properties. Blanket mortgage is often used by real estate developers to finance the purchase and development of land.
The Benefits of Blanket Mortgages with Rental Property Lending
Blanket mortgages offer a more efficient, cost-effective way for real estate investors to acquire financing. For a real estate investor, the alternative to a blanket mortgage would be to obtain separate mortgages for each property. For instance, if a company were planning to build a subdivision with 30 houses, it would need to take out 30 separate mortgages to finance the purchase and construction of the 30 homes.
Real estate investors looking for financing on single-family rental portfolio may overlook the importance of yield maintenance for a loan prepayment. It is something that investors must be aware of, as it may have a significant impact on their financing strategy.
Yield maintenance is a prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity.Yield maintenance is common in the commercial mortgage market, but only a few investors know about it in the residential lending market, so investors who are mainly associated with residential loans may not be familiar with how it works.
Homeowners often choose rental property ownership as an investment or something that yields consistent results. Over the years, however, you may need to refinance your rental portfolio, whether to take advantage of lower interest rates or decrease the monthly mortgage payments. The process of refinancing is not easy when it comes to rental properties.
Homeowners face a fair share of hurdles during rental mortgage refinancing process. They need to know how to overcome those hurdles to get the new mortgage for their properties quickly.
There are some key considerations that must be kept in mind when planning to refinance your rental portfolio.
When exploring your potential lending options in refinancing, it is important to have the most recent and accurate data on your assets. Acquisition date and price, current lease information, rehab expenses, maintenance/repair costs, insurance and taxes are some vital data that can lead you to the right financier. It is advised to organize the data in a clean excel file that is easy to understand for the lender. Also, the lenders appreciate a recent property inspection report from a certified source. This will not only make you credible but also increase the available options.
What should real estate investors be looking for in a great investment property loan and mortgage lender?
While he hasn’t always followed his own advice Donald Trump has said for decades that selecting non-recourse loans is the smart way to go to reduce liability, and separate personal from business and investment assets and debt leverage.
While some investors may desire to retire debt leverage early, there are clear advantages in reduced risk, and maximizing cash flow by obtaining an investment property loan with a longer term amortization payment schedule.
As rental property financing becomes more accessible for real estate investors more and more are seeking out new acquisitions and are looking to refinance investment property to maximize returns. However, there can be distinct differences in the terms different investors are able to obtain.
Here are five tips to consider to enable investors to land the best possible deal on their next rental property loan…