Countless real estate investors take advantage of investment property financing to purchase an investment property or to refinance a current home or building. With the appropriate Kentucky investment property loan, in conjunction with favorable financing conditions and interest rates, real estate investors can easily scale the success ladder.

As a real estate investor in Kentucky in need of lending alternatives, you will be happy to learn that investment home mortgages are not only easy to qualify for, but are also fast closing. Privately owned mortgage lenders, contrary to most banks, will lend funds to someone who is a self-employed applicant, provided the property is able to bring in cash flow, and the person has experience in real estate projects, and has a clear-cut exit strategy and displays the fiscal capacity to repay the financing. In addition, a down payment of some kind will be needed, whether by means of cash or making use of home equity within the property. Because private mortgage companies usually require a lot less forms and documents compared with banks and government bureaus, private real estate investment loans in Kentucky do not take nearly as much time compared to standard lending options and close fast.

Countless real estate investors use the equity locked within their properties as a means to generate cash to buy additional investment properties or purely to give a boost to the cash they have readily accessible. For example, a couple located near Lake Michigan in a tourist region purchased a bank-owned investment home for $600k. They sunk $150,000 into transforming and remodeling the house, and after that they started a B&B rental and the appraised valuation increased to $1.2 million.

The net annualized revenue derived from the property amounted to $120k/year. Their below average credit score of 460 made it improbable for a standard bank to aid them in recovering their personal investment in the house by doing a refi on the previous mortgage. Even so, Island View Private Loan Fund (IVPLF) was able to complete a real estate investor loan for them at 65% LTV, allowing them to free up the cash they had personally invested in the home.

Real estate investor loans are also effective for those who select to perform a cash-out refi to use equity from their real estate holdings for putting money down on other investment properties. Picture an investor friend you know who purchases a home in Kentucky and remodels it, but cannot sell it because of altered circumstances. His cash is trapped inside this project, stopping him from making use of it for other types of projects. Banks or other customary loan providers are not going to approve a cash-out refi if the person has held the home for under 12 months. On the contrary, IVPLF can do a cash-out refi of up to 70% loan-to-value based upon the as-is valuation of the house as calculated by a certified appraiser, even while the residence is vacant and waiting around to be sold.

At IVPLF, we fully understand that your wants and needs as an investor in real estate may vary dramatically. Your quest for the right Kentucky real estate investment loan ends here. Fill out the contact form on this page or get in touch with us via phone to discuss what kind of investment property loan might be most suitable for the property you have in mind.