Expanding Your Real Estate Investment Portfolio in an Evolving Market Finding a lending partner that understands your specific goals and vision can help you grow in any market.
by Rob Chiusano
T he unprecedented fluctuations in the real estate and mortgage lending markets have led to uncertainty for many real estate investors. Although some investors have temporarily exited the market, savvy real estate investors are expanding their portfolios by using flexible and diverse loan products. Understanding your options is the first step to creating more value and long-term income in your real estate investments. SPECIFIC LOAN TYPES AND ADVANTAGES Mortgage loans can be complex and challenging to obtain for real estate investors due to the intricacies in their personal or business financial position. Often, traditional mortgage loan options do not meet the needs for real estate investors. But successful real estate investors have pivoted to more flexible loan options that are specifically designed for experienced investors. Whether you are a veteran real estate investor focusing on Condotels, short-term or long-term rentals of 1–4-unit residential properties, there are loan options that can position you to continue to grow your portfolio in a volatile market: ● Cash Flow Loan. Qualify for a loan using the property’s rental income only. A Debt Service Coverage Ratio (DSCR) loan allows you to tap into a growing market without tapping into your investment portfolio reserves. These loans work for short-term rentals like Airbnb/ VRBO but are also widely used for certain multi-unit properties or condos. ● Cash Out Refi. Take cash from a current investment property and reinvest it in new properties to continue to develop your overall strategy to grow. Home values have never been higher, so it may be wise to tap into your equity to grow your portfolio. ● Jumbo Limits. Most of these loan programs offer increased loan limits. In a competitive market and
increased home prices, qualifying for loan amounts up to $3 million gives you a competitive advantage with sellers.
TITLE POSSIBILITIES Another benefit of nontraditional real estate investor loans is the ability to have the property’s title vested in an LLC or corporation. Many investors with a multitude of properties often prefer to keep the title in their business for various reasons. HOW TO TAKE ADVANTAGE Finding a lending partner that understands your specific goals and vision can help you grow in any market. Working with loan officers that have years of successful experience in nontraditional real estate investor loans will provide you with the support and knowledge you need to expand your portfolio. Arc Home is a Non-QM mortgage lender specializing in real estate investment loans. Contact us at (888) 294-7881 or visit us at www.archomedirect.com/page/think-realty to get started. •
Rob Chiusano, NMLS ID 8696, is Arc Home LLC’s Investment Loan Sales Manager. Rob has over 30 years of experience helping real estate investors grow their portfolio through a variety of innovative loan solutions. To learn more, contact 888-294-7881.
22 :: INVESTOR REVIEW :: MAR-APR 2023
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