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Rental Home Financing

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airbnb wealthy landlordShort term rental loans are becoming more common. This is because of the rapid growth of Airbnb properties, and the increasing number of people who want to invest in these properties. 

Whether you've been staying in a vacation rental on Airbnb or just heard of the lucrative short-term high-demand real estate opportunities, owning an Airbnb rental portfolio is a smart way to increase your passive income.

The market is expanding with Airbnb competitor platforms like VRBO and HomeAway. Turning short term rentals into Airbnb type real estate has never been a more lucrative real estate investment strategy, we are here to help you succeed.

Investing in Airbnb Properties

Airbnb's rapid growth has made it into a profitable industry for landlords. It has also created an opportunity for lenders to offer short-term rental loans to investors who want to become landlords themselves. Landlords can be lucrative with short-term rental loans, as they can charge up to four times the monthly rent than what you would earn from a traditional mortgage.

From homeowner to Investment Company Owner:

Airbnb has quickly become one of the most popular ways to monetize your home. A large number of landlords are now opting to rent out their property on Airbnb rather than with a traditional rental management company.

Airbnb LoansIntroduction to Airbnb Financing:

Airbnb is becoming one of the most popular platforms in the world for travelers to find temporary lodging. Many people are now considering Airbnb rentals as an alternative to hotels. This is because they can remain with their family in their own home while traveling.

A challenge some people face is that they do not have enough money to pay for the taxes and other costs associated with Airbnb rentals. This is where short-term loans for Airbnb properties come in handy.

What is a Short-Term Rental Loan & Why Do You Need One?

Short-term rental investment loans are mortgages that are designed to help people with their short-term rental investments. When it comes to these loans, there are a few different reasons why you may need one.

The first reason for getting a short-term investment mortgage is to cash in on the huge Airbnb market. If you want to buy a property as an investment property but don't have the required personal credit, then traditional loans can be problematic. Our short-term rental investment loans are based on the property income, and not your personal credit. The second reason is if you want to save money on your taxes because of the interest rates.

How Does an Airbnb Loan Work?

Airbnb loan is the fastest way to get funds when you are short of cash. But there are some requirements when it comes to applying for one.

You can apply if you have a valid bank account, an active Airbnb account, and are at least 18 years old. The property will be accessed based on the income it can provide instead of using your income tax returns. An LLC is a way to go here, this keeps your credit safe and prevents delays in getting your loan.

There are some other requirements for getting an Airbnb loan, but these are general ones that most people will meet without much difficulty.

What is a Blanket Loan?

blanket loanFor a real estate investor with multiple properties, a blanket mortgage covers all of them under one loan, it is a cost-effective and time-efficient way to reduce the stress of managing multiple loans. This is the "cliff-notes" version for learning about blanket loans. For those who are wanting to dig into details we wrote an extensive article on "All About Blanket Loans".

Investment real estate rental mortgages can be complicated, each new mortgage creates more work. Without a blanket loan, the more you keep adding to your portfolio, you are adding new mortgages for each one; creating a nightmare of paperwork, payments, & accounting challenges. 

Simplifying Investment Portfolios

With all the concerns of owning investment property for the real estate investor, like closing costs, the release clause, keeping up with multiple properties but under an individual properties loan, keeping up with all those pieces of real estate under a traditional mortgage with balloon payments and interest rates of a single mortgage for each of the rental properties; makes one wonder how real estate developers or property owner can keep up with any of the home loans at all.

With all the paperwork and multiple monthly payments to mortgage lenders, the home loans have drawn in house flippers instead of long time investors. Then people find out about types of loans called blanket mortgage loans. So let's learn more all about blanket loans.

All About Blanket Loans

A blanket mortgage solves the confusion of multiple loans by placing all properties under one loan with one monthly payment. This is completely simplifying the investment portfolio management process.

With a long-term loan, real estate may be sold without initiating a “sale case”, allowing you to use the proceeds of the sale to buy multiple properties. With Rental Home Financing, you can use a blanket loan for purchase or refinance. For example, if you buy a portfolio of a dozen rental properties, a blanket loan allows you to get a mortgage that covers all ten of them under one mortgage. Simple!

Friday, 29 October 2021 13:39

Understanding Blanket Loans

3 Reasons You Want to Use Blanket MortgagesIntroduction: What is a Blanket Loan and What are the advantages of blanket financing?

This is a financial product that offers a wide range of features, including a line of credit. A line of credit can be used to help consolidate rental investment home debt and also for other purposes, such as investing in more property for your LLC.

Many Properties Under 1 Loan

This loan offers many benefits over other loans because it can be used in so many different ways. They are easier to get than most other loans and the interest rate is typically lower than on an unsecured loan.

airbnb loans in TennesseeThe post "Nashville Area Has Low Cost of Living and High Quality of Life" appeared first on Lifestyle.

We all know that Nashville is a great city for Southern charm and culture, but did you know that the cost of living there is also among the lowest in the nation?

Why should I invest in real estate in Tennessee?

Investing in real estate is an excellent way to grow your wealth. Yet, there are many questions that come to mind when considering this option. For example, why should I invest in real estate in Tennessee?

Tennessee’s economy is booming. It has the eighth-largest economy of any state with a GDP of $303 billion, making it the sixth-largest contributor to the US economy. The state also has the seventh-best business climate among all 50 states. There are many reasons why investing in Tennessee real estate could be a wise decision for you and your family.

Wednesday, 27 October 2021 21:57

Airbnb Loan Financing

Airbnb Loan Guide for Airbnb for Short Term Rentals.

airbnd loan

Introduction: What is Airbnb Loan Financing and Why is it Relevant?

What is Airbnb?

Airbnb is a popular and affordable platform alternative to hotels that provides an opportunity to stay in someone else’s home during vacations and holidays. In short, its is a market for short term investment rental properties. Because the profitability is so high for the home owners, people are buying up remote properties now as vacation rental investments and advertise them on Airbnb. It's not just a fab from Los Angeles anymore, investors have learned quick how much growth this industry can have on their portfolio.

Airbnb Loan Financing: How It Works?

An Airbnb loan is financing for a short term rental investment property. At Rental Home Financing, we will review the cash flow of the properties and ensure they cover the annual debt service ratios of >1.2 which is a commercial term for cash flow. The best part is this can be your primary residence with this loan program.

Friday, 22 October 2021 07:34

Why Finance An Airbnb Property?

airbnb vacation rental mortgageAdvantages of an Airbnb Loan

One of the biggest advantages of a hard-money loan is that it allows you to buy a property that the lender cannot support. If payments are not made on time, the borrower loses his principal residence. Hard currency loans backed by real estate can also be used for investment properties for individuals and small businesses.

This is a fantastic alternative to traditional rental property financing and general financing for small businesses. When you take out a mortgage on your rental property, you will get a more reliable loan with a lower interest rate.

Qualifications can be difficult as you have a large down payment, a personal credit rating of at least 640-700, large cash reserves and a low loan-to-value ratio.

Investment Mortgage Refinance

Airbnb is working with Fannie Mae and other lenders to make it easier for hosts to refinance their mortgages. There are many loans available to complement your Airbnb, including credit lines, SBA loans, cash advances for merchants, and general small business loans. The SBA is an attractive loan for many real estate investors because it has lower interest rates than other loans and you have a longer time to repay it. However, Rental Home Financing will give you an investment loan based on the income of the property with no personal credit required.

Thursday, 21 October 2021 08:35

Rental Property Financing Guide

2unitsactiveWhy Invest in Rental Properties?

Real estate can be purchased for many reasons. If you are an investor, you can use real estate to protect yourself from market volatility and have many other advantages.

Being a landlord is a great way to get a steady passive income, but sometimes you need some money to move. Investment property financing can take many forms as long as the borrower meets certain criteria. Many dream of boosting investment performance owning an apartment building investment property but have credit challenges, Rental Home Financing can help.

If you do not have sufficient funds to buy a large amount of real estate, a loan may be the only option. However, you could lose your investment if the loan you get is not right for you. Here are types of loans you can use to invest in real estate.

When you contact a lender, it is vital to understand the requirements and differences between what is out there and what is in there.

airbnb loanWhen we first venture into the realm of real estate investing, we might consider vacation rentals as a good place to start. It can help us get our proverbial feet wet in the researching, financing, and prepping of investment properties, and provide the bonus of having our own getaway spot.

Are short-term rental properties a good investment? That answer might differ depending on who we ask, but to know the answer for ourselves requires a better understanding of what short-term rentals are and their potential benefits.

How to Qualify for Airbnb Loans That Boost Your PortfolioAs one of the most well-known rental property platforms, Airbnb can be a significant tool for property investors. It can be an efficient way to capitalize on space you already have, or it can be a lucrative way to earn extra income each month.

Airbnb loans are one way you can leverage the rental property market. With the right property investment strategies, you can take advantage of rental property loans that will grow your investment portfolio and boost your monthly income.

What Are Airbnb Loans?

Airbnb loans are a relatively simple concept — you secure a loan for a property that you intend to rent to other people. They aren’t a specific type of loan, though. There are several types of Airbnb loans that you might be able to qualify for.

Some of the most common types of Airbnb financing include:

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Rental Home Financing
9465 Counselors Way
Suite #200,
Indianapolis, IN 46240

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Rental Home Financing originates commercial blanket loans with a commercial purpose and is not currently authorized to make such loans in all areas of the United States. Specific circumstances will determine whether we have the ability approve/close portfolio rental home loans in your state(s). 

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