FUNDING Market- Responsive Lending
DESIGN Creating Solid Designs With Natural Stone
INVESTMENT STRATEGY Leveraging Self- Directed IRAs for Affordable Housing Solutions
FEATURE The Housing Squeeze: Solutions for an Una ordable Market AS HOUSING PRICES SOAR BEYOND REACH FOR MANY AMERICANS, INCORPORATE THESE POTENTIAL SOLUTIONS TO MITIGATE MARKET PRESSURES.
NOV-DEC 2024 $ 5 .95 US :: $ 6 .95 CAN
| :: NOVEMBER - DECEMBER 2024 All terms subject to credit approval. All loans must be solely for a business or commercial purpose and secured by a non-owner-occupied property. Products not available in ND, RI, or UT. In CA, NV, and SD products o ered by Fay Servicing, LLC d/b/a Constructive Mortgage Services. NMLS ID 88244. In all other states not previously listed, products are o ered by Constructive Loans, LLC d/b/a FMS Investor Financing. Please visit www.nmlsconsumeraccess.org for additional licensing/registration information. All loans made and arranged in California pursuant to a California Financing Law License # 60DBO-82792. Rates, terms, and conditions are subject to change from time to time without notice. This advertisement is intended for mortgage professionals only.
PUBLISHER & CEO Eddie Wilson MANAGING EDITOR Carmen Fields FULFILLMENT COORDINATOR Blair Pierce
DESIGNER Kat Hungerford CONTRIBUTORS Luke Babich Tara Bogard CV3 Financial Services Dominion Financial Services Alex Kaddah Kiavi Gaylene Rogers Lonergan Derreck Long Taylor Miller Joel Moyes Real Property Management Damon Riehl Je Roth John V. Santilli Jim Tannehill Michele Van Der Veen Skyler Wilson
HEY! LET’S BE FRIENDS! GET SOCIAL. STAY CONNECTED. Like, Follow & Share for the Latest Real Estate News, Trends and Insights from Think Realty Are you following Think Realty on social media? Things move pretty fast in real estate. Don’t miss out on the latest trends, tips, insights and news from your trusted resource for all things real estate investing! Follow. Like. Love. Share. Comment. You can do it all with Think Realty’s social media channels. Join the conversations in Think Realty social communities and connect with like-minded members who range from first-time to seasoned investors.
SUBSCRIPTIONS :: The annual subscription for Think Realty Magazine is $39.99 in the U.S. Order online at www. ThinkRealty.com or call 816-398-4130. Provide your full name, address and telephone number. DISCLAIMER :: Think Realty Magazine, its owners, con- tractors, distributors and their respective representatives do not provide tax, accounting, investment or legal advice and make no guarantee as to the e ectiveness or success of any investment or tax strategies discussed herein. Please consult your own independent adviser as to any questions you have or decision you are contemplating. ABOUT THIS MAGAZINE :: Think Realty Magazine is a publication of A nity Real Estate Media LLC. Reproduc- tion or use of any editorial or graphic, without permission, is prohibited. We are not responsible for the content of any paid advertisements. For reprint rights; to obtain a detailed statement of our privacy policy; and for all single-copy requests, address changes and other subscription inquiries:
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DOMINION FINANCIAL
100% FINANCING Now Offering: For Fix & Flip Loans 100% Acquisition 100% Rehab No Appraisal Rates as low as 9.5%
Option for no upfront points Close in as little as 48 hours Available Nationwide
410-883-8493
Dominion Financial Services LLC. NMLS ID # 898795, 32 South St Baltimore MD 21202. Dominion Financial Services, LLC is licensed or exempt from licensing in all states. Dominion Financial Services, LLC is licensed in Nevada as a Mortgage Company (License No. 5594). Dominion Financial Services, LLC is licensed in Minnesota as a Mortgage Originator (License No. MN-MO-898795). Dominion Financial Services, LLC is licensed in Arizona as a Mortgage Banker (License No. 0950308). Dominion Financial Services, LLC is licensed as a California Finance Lender and Broker under Department of Business Oversight (License No. 60DBO 91679). Dominion Financial Services, LLC is licensed in South Dakota as a Mortgage Lender (License No. ML-05220). Dominion Financial Services, LLC is licensed in North Dakota as a Money Broker (License No. MB103364). Dominion Financial Services, LLC is licensed in Vermont as a Commercial Lender (License No. 898795 CLL). Dominion Financial Services, LLC is licensed in Oregon as a Mortgage Lender (License No. ML-5763). Dominion Financial Services, LLC is licensed in Idaho as a Mortgage Broker/Lender (License No. MBL-2080898795). Dominion Financial Services, LLC is licensed in Colorado as a Mortgage Company.Dominion Financial Services, LLC is licensed in the District of Columbia as a Mortgage Dual Authority (License No MLB898795) Dominion Financial Services, LLC is licensed in Florida as a Mortgage Lender (License No. MLD1796). Dominion Financial Services, LLC is licensed in Pennsylvania as a Mortgage Lender (License No. 104295). Dominion Financial Services, LLC is licensed in Texas as a SML Mortgage Company. Dominion Financial Services, LLC | NMLS# 898795 | 32 South St, Baltimore, MD 21202 | DominionFinancialServices.comipsum
| :: NOVEMBER - DECEMBER 2024
LETTER FROM THE EDITOR
A ordable Housing and Advocacy E lection years can have a significant impact on real estate investing. Rate changes, inflation, and the general rise in cost of living are all trending topics in our current climate. Another, affordable housing, is not a new topic of discussion in the political arena and will likely always be an area where legislative initiatives are revised or renewed. The pandemic exacerbated the affordable housing crisis. Rate increases and the rising cost of living have significantly added to the affordable housing challenge. The real estate market cycle ebbs and flows. It will be particularly interesting to see what policies are reformed to assist in this crisis during the current election cycle. It is important to note that the individual real estate investor has a direct impact on providing affordable housing. As an industry, the small real estate investor is responsible for more than 70% of the investment properties owned. This is why your voice matters. Both Think Realty and the American Association of Private Lenders have formed the Governmental Relations Committee (GRC). Those involved are committed to making sure the real estate investing space has a voice and seat at the table for legislative conversations. Over the years, multiple discussions have been held with both House and Senate committee members, foraging a relationship to better understand the critical impact investors have on the housing industry and the importance of supporting those individuals. What we have discovered is the importance of a collaborative environment, where multiple objectives and agendas can come together and work for a common goal. Although both GRCs will continue to stay up to date on any initiative that could negatively or positively impact the investing space, it is important to keep your ear to the ground locally. Often, the larger federal side appears to make the decisions when local government truly helps shape policy and standards in your areas. It is imperative, as a real estate investor specifically, to familiarize yourself with local laws regarding real estate. Knowing what policies impact you directly will aid you in making sound investing decisions, whether that be pivoting into a new strategy or continuing your current path.
CARMEN FIELDS MANAGING EDITOR
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INSIDE THIS ISSUE
FEATURE PAGE 28 The Housing Squeeze: Solutions for an Una ordable Market AS HOUSING PRICES SOAR BEYOND REACH FOR MANY AMERICANS, INCORPORATE THESE POTENTIAL SOLUTIONS TO MITIGATE MARKET PRESSURES.
TAYLOR MILLER
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C O N T E N T S
FUNDING Market-Responsive Lending Rehab Financial Group enhances real estate investing with adaptable lending solutions, streamlining processes to swiftly meet the demands of a dynamic market. John V. Santilli PAGE 8 The Gi of the 30-Year Mortgage America’s unique consumer mortgage loans provide advantages over other countries. Joel Moyes PAGE 12 Your Guide to Financing an Investment Proper
INVESTMENT STRATEGY Leverage Self-Directed IRAs for A ordable Housing Solutions Use Self-Directed IRAs to partner with nonprofits and drive impactful a ordable housing initiatives. Tara Bogard PAGE 30 Gen Z Homebuyers Wield Influence Understand Gen Zer’s preferences and expectations to gain a competitive edge. Kiavi PAGE 32 2025 Investment Opportunities in the Oil and Gas Sector Amid changing economic conditions and a pivotal election year, these investments are a strategic option to diversify and stabilize your portfolio. Derreck Long PAGE 34 PRODUCTS & SERVICES Liquid Logics Unveils Game-Changing Tech for Investors and Lenders Liquid Logics is transforming the real estate sector with unprecedented access to capital and streamlined property analysis for investors and lenders. Alex Kaddah PAGE 38
OPERATIONS Overcome Approval Hurdles in A ordable Housing Development By engaging early, developers can meet regulatory requirements and keep projects on track. Taylor Miller PAGE 40 Modernize an Outdated Proper to Boost Your ROI Upgrades that transform your outdated rental property into a modern, desirable home will significantly enhance its marketability. Real Property Management PAGE 42 Be Your Own Housing A ordabili Advocate Educate yourself and your clients to decrease expenses and achieve housing goals. Je Roth PAGE 44 Video Should Dominate Your Marketing But don’t take our word for it—rely on the data. Skyler Wilson PAGE 48 Must Landlords Allow Assistance Animals? Explore how to accommodate tenants with assistance animals while adhering to the Fair Housing Act. Gaylene Rogers Lonergan PAGE 50 Transform A ordable Housing Challenges Into Opportunities A robust business operating system can provide guidance to achieve economic growth and community development. Jim Tannehill PAGE 52
Navigate the private lending world with this article series. Damon Riehl PAGE 14 The Key to Maximizing Your Fix-and-Flip ROI Secure full financing and maximize your investment returns. Dominion Financial Services PAGE 18
Mortgage Assistance Programs: A Lifeline for A ordable Homebuying Use these resources to make property investments more accessible and profitable. Luke Babich PAGE 20
DESIGN Creating Solid Designs With Natural Stone Natural stone transcends temporary trends to o er timeless elegance and durability in interior design. Michele Van Der Veen PAGE 22
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FUNDING
Market-Responsive Lending REHAB FINANCIAL GROUP ENHANCES REAL ESTATE INVESTING WITH ADAPTABLE LENDING SOLUTIONS, STREAMLINING PROCESSES TO SWIFTLY MEET THE DEMANDS OF A DYNAMIC MARKET.
JOHN V. SANTILLI
T rends and conditions can shift rapidly in the real estate market. Having a lending partner who can effectively respond to market changes is crucial to your success. As the real estate landscape evolves, investors must be prepared to navigate various challenges, ranging from fluctuating interest rates to shifting market conditions. A lending partner who can adapt their strategies and offerings to meet your changing needs can be the difference between whether you thrive or merely survive. The need for flexibility and responsiveness is at the heart of this dynamic relationship. A lender who is slow to react or unwilling to modify their approach may need help to provide the support investors require. In contrast, a responsive lending partner can anticipate these changes and proactively offer
solutions that help investors capitalize on emerging opportunities. At Rehab Financial Group, we prioritize being nimble and adaptable. For over 15 years, we have been an industry leader, providing our 100% Fix & Flip Premier Loan to help real estate investors retain more cash and maximize their project profits. One of the biggest hurdles many real estate investors face is coming up with a significant down payment, often 20% or more of the property’s value. This can be a significant barrier to entry, especially for those who are just starting or have limited capital available. RFG opens the doors to real estate investing for a broader range of individuals by offering 100% financing that requires no down payment, allowing investors to preserve cash
reserves for other essential investments or expenses. Our goal is to empower more investors to capitalize on the most promising opportunities without having to deplete their own resources or secure additional funding. As the industry leader in 100% financing, we understand the importance of responding to the changing needs of the market. That’s why RFG now offers the following market-driven benefits. NO INCOME VERIFICATION At Rehab Financial Group, we recognize that no-income-verified loans are important for the unique financial circumstances of the self-employed and real estate investors. That’s why we’ve implemented a 100% financing solution that eliminates the need for income verification. With our no-income-
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verification loans, investors can access the funding they need without providing extensive documentation, pay stubs, or tax returns—and keep more cash on hand because there is no down payment! This unique approach to our 100% Fix & Flip Premier Loan saves time, hassle, and cash. It opens a world of possibilities for investors who may have previously been shut out of the market due to their unconventional income sources. By removing this barrier, we’re empowering investors to focus on what truly matters: identifying and capitalizing on the most promising investment opportunities. SAME DAY APPROVAL In the world of real estate investing, speed is of the essence. The ability to act quickly and decisively can mean the difference between securing a lucrative investment and watching it slip through your fingers. That’s why Rehab Financial Group is committed to streamlining the loan process, offering same-day approval for your loan application. Our team of experienced professionals has honed our underwriting processes so we can evaluate a loan request and provide a decision in hours, not days or weeks. By eliminating the lengthy approval processes that are all too common in the traditional lending landscape, we’re empowering investors to move swiftly and confidently, secure in the knowledge their financing needs are being met efficiently. This level of responsiveness from RFG is a game-changer for real estate investors, allowing them to seize opportunities and stay one step ahead of the competition.
is looking to acquire a new property, refinance an existing investment, or fund a renovation project, the speed at which every investor can secure the necessary financing can make all the difference in their success. At Rehab Financial Group, our goal is to help every investor access their funds within five to 10 business days after approval and all transaction services (appraisal, inspection, title, etc.) have been fulfilled. This level of responsiveness is a significant advantage for real estate investors, allowing them to seize opportunities as they arise and stay ahead of their competitors. By streamlining our processes and leveraging our extensive industry experience, we can provide motivated investors with the funding they need in a fraction of the time it would take with traditional lenders. This provides the significant competitive edge you need to maintain greater control over your investment strategy and capitalize on the most promising opportunities as they present themselves. THE GO TO CHOICE Real estate investors constantly navigate a dynamic and ever-evolving landscape, where the ability to adapt to changing market conditions can make all the difference in the world. Rehab Financial Group remains the go-to choice for investors, offering the responsiveness, flexibility, and accessibility essential for success in this competitive industry. By eliminating the traditional barriers to real estate investing—burdensome down payments and lengthy approval processes—RFG opens the door to a world of possibilities, empowering people to build profitable investment portfolios. At the heart of the offerings Rehab Financial Group brings to the market
is a deep understanding of real estate investors’ unique needs and challenges. We’ve built our business around cutting-edge loan products, processes, and responsiveness. This ensures our team is always ready to support each investor with the personalized attention and tailor- made solutions they need to succeed. Whether someone is a seasoned pro or just starting to explore the lucrative world of real estate investing, they can count on Rehab Financial Group to be a trusted lending partner in navigating the ever-changing landscape of this industry.
JOHN V. SANTILLI
John V. Santilli is the chief revenue o cer for RFG. He joined the company in July 2019 and is responsible for all opportunities connected to RFG, including expanding the company’s sales channels to maintain its position as a leader in rehab financing. Before joining RFG, Santilli had 25 years of lending and marketing executive leadership experience across multiple private and public marketing- dependent companies. He managed companies from startup to maturity, ranging from $2.5 million to more than $50 million in annual revenue. Santilli earned a master’s degree in management from the University of Pennsylvania and a bachelor’s degree in business administration with a concentration in marketing from Drexel University.
FUNDING IN 5 TO 10 BUSINESS DAYS
Being able to access funding quickly can be a game-changer. Whether someone
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HOW TO THRIVE IN UNCONVENTIONAL TIMES
Winning in Today’s Real Estate Market
Unconventional Opportunities When standard financing falls short, having a diverse arsenal of lending solutions is key. At CV3 Financial, we offer tailored financing to meet your needs, no matter how unconventional the situation. Here’s creative financing in action: EQUITY RELEASE: If a flipped property isn’t selling due to market conditions, don’t let that equity sit idle. CV3 can help unlock equity in listed properties so you can move on to your next deal and keep momentum. CONSTRUCTION COMPLETION: Facing delays in a renovation due to supply chain issues? Use CV3’s unconventional financing to finish the project quickly and get your property to market. Our construction completion loans provide the capital to ensure no opportunity is left unfinished. PORTFOLIO REFINANCING: With better rates available, it’s a good time to explore cash out or rate and term refinancing of your rental portfolio. Investors using portfolio refinancing often see a 15-20% boost in cash flow, freeing up capital for new opportunities. FIX AND FLIP: The average flip profit is $73,000 according to the latest reports, so there’s still plenty of upside. With 100% rehab financing, you could see 10-15% higher profits compared to self- funding. Our specialized fix-and-flip loans can help you transform undervalued properties into profitable sales. DSCR LOANS: Private lender DSCR interest rates are competitive with today’s bank financing but without the hassle. Whether you need short-term, interest-only ARMs or a long-term rental PITI solution, our DSCR loans offer flexibility with terms that fit your strategy. Partner with a Lender That Dares to Innovate In an environment where conventional solutions fall short, your ability to think outside the box becomes your greatest asset. That’s where CV3 comes in. We’re not just another lender; we’re your strategic partner, committed to helping you turn uncertainty into opportunity. Let’s work together to transform obstacles into opportunities—and set you up for success.
In today’s market, sticking to conventional wisdom won’t cut it. With the triple threat of high home prices and interest rates, combined with scarce inventory, investors are feeling the pinch. But here’s the good news—when the market is tight, opportunities arise for those who are prepared and bold enough to pivot. If you’re ready to embrace the chaos and think unconventionally, you can still win big. At CV3 Financial, we understand that real estate investing requires more than the typical cookie-cutter approach. That’s why we empower investors with creative, flexible lending solutions tailored This isn’t the market for the faint of heart. It’s time to break the mold and step outside the box. Whether you’re sitting on unsold flipped properties, staring at untapped equity in rentals, or managing projects that have been delayed, these aren’t outliers— they’re the new normal. The key is having a capital partner who’s ready when others might hesitate. In real estate investing, markets fluctuate, timelines slip, and buyer demands shift. Instead of resisting the volatility, successful investors embrace it, adapt , and navigate it with the right tools in hand. If you’re too rigid, the opportunities slip away. If you’re agile, you’re ready for anything the market throws at you. to today’s unpredictable market. How Adaptable Investors Win Data shows that investors who can adapt their strategies to market shifts are 35% more likely to maintain or improve their portfolio performance during downturns. It’s not the biggest, baddest , or strongest who survive, but those who can pivot when needed.
Investors with flexible financing options were able to secure new deals 25% faster than those relying solely on conventional loans. In today’s market, quick access to capital is a major competitive edge. Turning problems into profit
(844)721-3733 | www.CV3financial.com/think-realty
This is not a commitment to lend. Actual rates and terms depend on a variety of factors and restrictions may apply. CV3 Financial Services, LLC reserves the right to amend rates and guidelines without notice. NMLS ID #2478266. Loans made or arranged pursuant to California Finance Lenders Law License 60DBO-183355. AZ Mortgage Banker License #1047792, Idaho MBL-2082478266, FL Mortgage Banker License #MLD2457, MN License #MN-MO-2478266, OR Mortgage License #2478266, UT Mortgage Entity License #13576219.
To find private money you can trust, start with AAPL. Our members are the most-trusted private lenders in the business. They’ve pledged to follow the industry’s only Code of Ethics, enforced by the oldest and largest association for private lenders.
Find your next financial partner today at aaplonline.com/directory.
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FUNDING
The Gi of the 30-Year Mortgage AMERICA’S UNIQUE CONSUMER MORTGAGE LOANS PROVIDE ADVANTAGES OVER OTHER COUNTRIES.
JOEL MOYES
W hen it comes to
and predictability. Here’s why it is such a powerful tool: IT’S OFFERS AFFORDABILITY. By spreading the loan repayment over 30 years, monthly payments are lower than those of shorter-term loans. This makes homeownership more affordable for a larger segment of the population. IT OFFERS PREDICTABLE PAYMENTS. With a fixed interest rate, homeowners have the assurance that their principal and interest payments will remain consistent throughout the life of the loan. This predictability aids in long- term financial planning and budgeting. IT BUILDS EQUITY. Over time, as homeowners make their monthly payments, they build equity in
their property. This equity can be a significant financial asset, contributing to long-term wealth creation. IT OFFERS TAX BENEFITS. Mortgage interest deductions provide substantial tax savings, further enhancing the financial attractiveness of homeownership. LIMITED FINANCING OPTIONS ABROAD In contrast to the U.S., many other countries do not offer comparable long- term, fixed-rate mortgage products, making homeownership less accessible. Let’s look at a few examples: EUROPE. In many European countries, mortgage terms are typically shorter,
homeownership, the 30- year fixed-rate mortgage
stands out as a uniquely American gift. This financial product has empowered countless individuals to achieve the dream of homeownership. Compared to many other countries that lack such accessible financing options, the 30-year mortgage offers significant advantages that make home-buying more attainable and secure for Americans. A PILLAR OF AMERICAN HOMEOWNERSHIP The 30-year fixed-rate mortgage is designed to offer stability
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often ranging from 15 to 25 years. Interest rates are often variable, leading to payment fluctuations that can create financial uncertainty for homeowners. The higher monthly payments and the potential for rising costs make it more challenging for individuals to enter the housing market. AUSTRALIA. Australian mortgages often feature variable interest rates and shorter terms. Although fixed- rate options are available, they are usually limited to shorter periods, such as five years. This can expose homeowners to interest rate risks and higher long-term costs. JAPAN. Japan does offer long-term fixed-rate mortgages, but the terms are often less favorable than those in the U.S. Additionally, Japan’s real estate market is characterized by slow property appreciation, which limits the wealth- building potential of homeownership. LATIN AMERICA. In many Latin American countries, high interest rates and shorter loan terms are common, making mortgages less affordable. Economic instability and inflation can further complicate the home financing landscape, deterring potential buyers. THE AMERICAN ADVANTAGE The availability of the 30-year fixed- rate mortgage in the United States provides a distinct advantage to American homebuyers. This financing product not only makes homeownership more attainable but also contributes to economic stability and individual wealth creation. The ability to lock in a low interest rate for the life of the loan shields homeowners from market volatility and rising interest rates, offering a level of security that is rare in other parts of the world. The 30-year fixed-rate mortgage is truly a gift, providing Americans with a reliable
and affordable path to homeownership. By appreciating and leveraging this unique advantage, prospective homeowners can secure their future, build wealth, and enjoy the stability that comes with owning a home.
JOEL MOYES
Joel Moyes has more than two decades of experience in development, brokerage, and investment management. A driving force behind Realty Executives and a principal at Kinetic Companies, his extensive background includes a wide range of activities from strategic business development and consulting to acquisition and pre-leasing services, with successful transactions totaling hundreds of millions in aggregate consideration. At Kinetic Companies, Moyes and his team partner with international and domestic investors to navigate market cycles and challenges across various industries, including healthcare, technology, and commercial real estate. As the designated broker for Red Brick Property Management, Moyes oversees the management of a diverse portfolio of properties, ranging from tenant relations and lease administration to financial reporting and maintenance. As co-owner of Realty Executives, Moyes fosters a culture of excellence and empowerment, inspiring both seasoned professionals and aspiring agents. His commitment to client satisfaction and community engagement underscores his dedication to corporate responsibility and social impact.
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FUNDING
Your Guide to Financing an Investment Proper NAVIGATE THE PRIVATE LENDING WORLD WITH THIS ARTICLE SERIES.
DAMON RIEHL
I nvesting in real estate can be a lucrative venture, offering both immediate rental income and long- term appreciation. Securing financing for an investment property can be complex, however, involving different strategies and financial products compared to primary home loans. This comprehensive guide will walk you through the steps of financing an investment property, helping you make informed decisions to maximize your returns. At Investment Property Loan Exchange, we aim to simplify the process and provide you with the best financing options available.
Investment property financing differs from traditional home loans in several key ways. Lenders view investment properties as riskier due to the potential for vacancies and variable rental income. As a result, interest rates are typically higher, and the qualification criteria are more stringent. TYPES OF INVESTMENT PROPERTY LOANS Before you begin to seek financing, you must understand the types of products available. 1. CONVENTIONAL LOANS. These are traditional mortgage loans not backed
by the government. They typically require a higher credit score and a down payment of at least 20-25%. Conventional loans offer competitive interest rates and are suitable for investors with strong credit histories. 2. HARD MONEY LOANS. These are short-term loans that private lenders provide. Investors looking to quickly purchase and renovate properties often rely on these loans. Hard money loans have higher interest rates and shorter repayment terms, but they are easier to qualify for compared to conventional loans. 3. FEDERAL HOUSING ADMINISTRATION FHA LOANS. The FHA offers
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loans with lower down payment requirements, typically around 3.5%. However, FHA loans are primarily designed for owner- occupied properties, so using them for investment purposes can be challenging unless you plan to live in one of the units. 4. VETERANS AFFAIRS VA LOANS. VA loans are available to current and former military service members. These loans offer competitive interest rates and require no down payment. Similar to FHA loans, VA loans are intended for primary residences, but there are ways to use them for investment properties under certain conditions. 5. PORTFOLIO LOANS. These are loans held by the lender instead of being sold on the secondary market. Portfolio loans offer more flexibility in terms of qualification and terms, making them a
Lenders view investment properties as riskier due to the potential for vacancies and variable rental income. As a result, interest rates are typically higher, and the qualification criteria are more stringent.”
STEPS TO SECURE FINANCING
down payment compared to primary residences. Plan to put down at least 20-25% to secure financing. 3. DEBT TO INCOME DTI RATIO. Lenders for conventional financing options will assess your DTI ratio to ensure you can handle the additional debt. A lower DTI ratio indicates better financial health and improves your chances of loan approval. 4. CASH RESERVES. Lenders often require borrowers to have cash reserves to cover several months of mortgage payments. This provides a buffer in case of vacancies or unexpected expenses. 5. PROPERTY INCOME POTENTIAL. Lenders will evaluate the rental income potential of the property. Having a detailed cash flow analysis and rental history can strengthen your loan application.
Now that you’re equipped with an understanding of the financing vehicles available and what lenders will look for, follow these steps to secure your financing. 1. ASSESS YOUR FINANCIAL SITUATION. Review your credit score, savings, and overall financial health. Make necessary improvements to strengthen your loan application. 2. RESEARCH LOAN OPTIONS. Explore different loan products and lenders. LoanBidz.com by Investment Property Loan Exchange offers a variety of financing options tailored to meet the needs of real estate investors. 3. GET PRE APPROVED. Obtain a pre- approval letter from a lender. This not only gives you a clear picture of
good option for investors with unique financial situations.
KEY CONSIDERATIONS WHEN FINANCING AN INVESTMENT PROPERTY As you prepare to secure financing, inform yourself about what potential lenders will be looking for as they evaluate your deal. 1. CREDIT SCORE. Your credit score plays a crucial role in securing favorable loan terms. Aim for a score of at least 620 for conventional loans, though a score of 740 or higher will get you the best rates. 2. DOWN PAYMENT. Investment properties typically require a higher
your budget but also makes you a more attractive buyer to sellers.
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4. FIND THE RIGHT PROPERTY. Look for properties with strong rental potential and growth prospects. Conduct thorough due diligence to ensure you’re making a sound investment. 5. SUBMIT YOUR LOAN APPLICATION. Once you’ve found a property, submit your loan application with all required documentation. Be prepared for the underwriting process, which involves a detailed review of your financial situation and the property. The loan approval process can vary depending on the complexity of the loan and the lender’s requirements. On average, it takes 30-45 days from application to closing. However, hard money loans and other alternative financing options can be processed more quickly. 6. CLOSE THE DEAL. After approval, complete the closing process. This involves signing the loan documents and transferring funds. WHY CHOOSE LOANBIDZ.COM BY INVESTMENT PROPERTY LOAN EXCHANGE? At LoanBidz, we specialize in helping investors navigate the complexities of financing investment properties. Our experienced team offers personalized guidance and access to a wide range of loan products, ensuring you find the best financing solution for your needs. Whether you’re a first-time investor or looking to expand your portfolio, we are committed to helping you achieve your real estate goals. Financing an investment property requires careful planning and a thorough
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understanding of your options. By following the steps outlined in this guide and partnering with a trusted lender like Investment Property Loan Exchange, you can secure the financing you need to make profitable real estate investments. Start your journey today and unlock the potential of real estate investment.
DAMON RIEHL
Damon Riehl is the founder and CEO of Investment Property Loan Exchange. He has more than 35 years of lending experience in various asset classes, including commercial and residential mortgage, and small business construction lending. Riehl held top leadership positions as head of commercial lending for Ocwen Mortgage, head of unsecured lending for Citibank, global mortgage leader for GE Capital, and head of construction products at Fannie Mae. He is a member of the Harvard Joint Centers for Housing Studies. Riehl has built six de novo lending platforms and used that knowledge to build and grow Investment Property Loan Exchange and the fintech platform LoanBidz.com. Now that you understand the benefits and considerations you need to take when investing in real estate, you may want to start investing in your first property. One of the first steps is to work out a budget and your financing options. Our team at LoanBidz.com can help you figure out a ordable options from the most reliable lenders for your exact needs.
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FUNDING
The Key to Maximizing Your Fix-and-Flip ROI SECURE FULL FINANCING AND MAXIMIZE YOUR INVESTMENT RETURNS.
DOMINION FINANCIAL SERVICES
D ominion Financial Services (DFS), a leading national private lender for residential real estate investors, offers a comprehensive bridge loan program with a unique opportunity to maximize your return on investment (ROI) for fix-and-flip deals. The program provides up to 100% financing for both acquisition and rehab costs, with interest rates
starting as low as 9.5%. Tailored for experienced investors, the program is designed to maximize operating capital and boost investment returns. KEY HIGHLIGHTS OF THE DOMINION FINANCIAL BRIDGE LOAN PROGRAM ▷ COMPETITIVE RATES. Investors can benefit from financing rates
as low as 9.5%. With the option to buy down the rate by one point or choose an 11% rate with no upfront origination points, the program provides the flexibility needed to align with your financial goals. ▷ COMPREHENSIVE FINANCING. The Bridge Loan Program covers 100% of both acquisition and rehabilitation expenses. With these costs covered,
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you can maximize your operating capital and invest in more projects without tying up additional funds. ▷ EFFICIENT UNDERWRITING. DFS streamlines the loan approval process with in-house underwriting and no appraisal requirements. This approach accelerates access to funds, allowing deals to close in as little as 48 hours. Quick access to financing means you can seize investment opportunities faster, ensuring you capitalize on potential gains without delay. ▷ NATIONWIDE AVAILABILITY. ENHANCING YOUR INVESTMENT STRATEGY WITH DOMINION’S DSCR RENTAL LOANS DFS’s bridge loan program is not just about providing capital; it’s about empowering you to maximize your ROI through strategic financing. The program covers 100% of acquisition and rehab costs, offers competitive rates, up to 100% loan-to-cost financing, and streamlines the approval process, equipping you with the tools to achieve greater financial returns. Investors seeking long-term solutions can explore Dominion Financial’s rental loans, which come with a DSCR Price-Beat Guarantee. With Dominion Financial, you can rest assured you are getting the best deal in the industry, from initial purchases to long-term property management. To learn more about how the DFS Bridge Loan Program can help you maximize your ROI and optimize your investment strategies, call (410) 883- 8493 to speak with a loan officer.
Dominion Financial Services LLC. NMLS ID # 898795, 32 South St Baltimore MD 21202. Dominion Financial Services, LLC is licensed or exempt from licensing in all states. Dominion Financial Services, LLC is licensed in Nevada as a Mortgage Company (License No. 5594). Dominion Financial Services, LLC is licensed in Minnesota as a Mortgage Originator (License No. MN-MO-898795). Dominion Financial Services, LLC is licensed in Arizona as a Mortgage Banker (License No. 0950308). Dominion Financial Services, LLC is licensed as a California Finance Lender and Broker under Department of Business Oversight (License No. 60DBO 91679). Dominion Financial Services, LLC is licensed in South Dakota as a Mortgage Lender (License No. ML-05220). Dominion Financial Services, LLC is licensed in North Dakota as a Money Broker (License No. MB103364).Dominion Financial Services, LLC is licensed in Vermont as a Commercial Lender (License No. 898795 CLL). Dominion Financial Services, LLC is licensed in Oregon as a Mortgage Lender (License No. ML-5763). Dominion Financial Services, LLC is licensed in Idaho as a Mortgage Broker/Lender (License No. MBL-2080898795). Dominion Financial Services, LLC is licensed in Colorado as a Mortgage Company. Dominion Financial Services, LLC is licensed in the District of Columbia as a Mortgage Dual Authority (License No MLB898795) Dominion Financial Services, LLC is licensed in Florida as a Mortgage Lender (License No. MLD1796). Dominion Financial Services, LLC is licensed in Pennsylvania as a Mortgage Lender (License No. 104295). Dominion Financial Services, LLC is licensed in Texas as a SML Mortgage Company.
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FUNDING
Mortgage Assistance Programs: A Lifeline for A ordable Homebuying USE THESE RESOURCES TO MAKE PROPERTY INVESTMENTS MORE ACCESSIBLE AND PROFITABLE.
LUKE BABICH
A lthough many experts spent the last few years predicting an economic downturn, the past two years have been good for residential real estate investors. A recent survey of real estate investors found that three-quarters of them were making at least as much in 2024 as they made in 2023 from their investments, and more than 40% were making more than they did a year ago. In addition, overall performance is beating expectations. Nearly half of investors said they were making more from their real estate investments than they expected. Several factors are driving this real estate investment boom. Despite a general atmosphere of economic uncertainty, Americans are still moving around the country — most in pursuit
Federal Housing Administration (FHA) and Veterans Affairs (VA) loans come with relaxed qualification standards, affordable mortgage rates, and very low down-payment requirements. Applicants for an FHA mortgage can qualify with a credit score as low as 500 and put down as little as 3.5% upfront, which is much lower than the conventional 15% or 20% required by conventional investment property loans. FHA applicants can also be approved even if they have a checkered financial history that includes a bankruptcy filing or a past foreclosure. Requirements for a VA loan are even more relaxed. Applicants can put no money down and may be exempt from credit score requirements. Of course, these loans come with conditions. For VA mortgages,
of a higher quality of life. That has kept demand for housing high and enabled savvy investors to put their money into profitable properties. An underappreciated factor in the ongoing investment boom is the presence of mortgage assistance programs that enable investors to buy properties without putting down a lot of money upfront. Similar to homebuyer rebate programs that ease financial pressure for buyers, these programs enable investors to buy properties that might otherwise be out of their reach. HOUSE HACKING WITH FHA OR VA LOANS One of the most efficient and creative financing strategies for real estate investors is to combine “house hacking” with popular government mortgage programs.
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applicants must be active service members, military veterans, or the surviving spouse of a veteran. For FHA mortgages, the loan limit is quite a bit lower than conventional mortgages, so you’ll be restricted in your choice of property. These mortgages also come with a rule that they can be used only for a primary residence. Applicants must live in the property they buy with either of these loans. That’s where “house hacking” comes in. House hacking is the practice of buying a multiunit property, living in one unit, and renting the others to lower or cover the entire cost of the monthly mortgage payment. Investors are allowed to buy a multiunit property with a VA or FHA mortgage as long as they use one of those units as a primary residence. FHA mortgages can be used on secondary homes in some limited circumstances, but only if you’re experiencing housing hardship. A DEBT SERVICE COVERAGE RATIO LOAN A debt-service coverage ratio (DSCR) loan is an unconventional type of mortgage that’s often used on investment properties. The approval process for a DSCR loan looks at potential rental income from the investment property instead of the financial profile of the prospective buyer. If the investment’s rental income will comfortably cover mortgage payments, the lender will be inclined to give you the loan. This type of mortgage can be a lifesaver for investors who’ve found an amazing investment opportunity but, for whatever reason, would have a tough time getting approved for a conventional loan. The debt service coverage ratio is calculated by dividing the investment property’s projected net operating income
by the amount of annual debt. A ratio of 1 means the projected rental income is equal to the debt payments. A ratio of less than 1 means the income won’t be able to cover the debt payments. When the ratio is larger than 1, the investment starts to look more appealing. Lenders generally want to see a DSCR ratio of at least 1.2, meaning you’ll be able to make your debt payments with a good amount of cash left over for operating expenses. The higher the debt service coverage ratio, the more cash you’ll have on hand after making your mortgage payments, which translates to less risk for the lender. Although DSCR loans can be used on virtually any type of investment property and allow investors to bypass the lengthy conventional mortgage approval process, they do come with some drawbacks. Interest rates can be higher than for conventional loans, loan fees can be significant, and buyers may have to put down 20% or more upfront. HARD MONEY LOANS Hard money loans, sometimes called bridge loans, are loans from private companies or individuals that investors often use. These loans require the borrower to secure the loan with assets, such as a home, as collateral. Investors who flip houses often use hard money loans to finance their next investment while preparing to sell their previous one. Similar to DSCR loans, hard money loans can be approved much faster than a conventional mortgage and are based more on the financial viability of the investment than on the individual investor’s financial profile. For this reason, they’re often used by house flippers and investors. They also come with drawbacks. The interest rate on hard money loans can
be double the rate of conventional mortgages, and they come with very short repayment terms, typically one to two years. Hard money loans are fast business loans that are priced at a premium for lucrative, short- term real estate investments. Mortgage assistance programs are providing real estate investors with pivotal support amid economic uncertainties, fueling a property investment boom. Through creative financing strategies like “house hacking” with FHA and VA loans and leveraging unconventional mortgage types like DSCR and hard money loans, investors are maximizing their returns and overcoming traditional financial barriers. These programs not only facilitate the acquisition of properties with minimal upfront costs but also cater to those facing financial challenges, thereby expanding opportunities for profitable investments across various sectors of the real estate market.
LUKE BABICH
Luke Babich is the co-founder of Clever Real Estate, a real estate education platform committed to helping homebuyers, sellers, and investors make smarter financial decisions. Babich is a licensed real estate agent in the state of Missouri. His research and insights have been featured on BiggerPockets, Inman, the Los Angeles Times, and other online and media outlets. Babich earned a bachelor’s degree in political science, with honors, from Stanford University.
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DESIGN
Creating Solid Designs With Natural Stone NATURAL STONE TRANSCENDS TEMPORARY TRENDS TO OFFER TIMELESS ELEGANCE AND DURABILITY IN INTERIOR DESIGN.
MICHELE VAN DER VEEN
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S trong, stunning, and timeless interiors come from the materials you include in your design. Although there’s an endless selection of trendy options available, incorporating nature by using natural stone can help you keep your design timeless and appealing, regardless of how trends change. Because of its longevity, natural stone is a cost- effective material and is a great selling point. Whether you use it in your income investment properties, new builds, or renovations, natural stone creates beautiful interiors that will captivate all your prospects. Gone are the days when natural stone was used only on fireplaces. Today, natural stone is used in just about every aspect of design. From shower walls to kitchen backsplashes to interior flooring and even accent walls, natural stone makes a strong statement. Try using natural stone as an accent wall to the bed wall in the primary bedroom, or add it to the kitchen backsplash to give the kitchen a more rustic/ ranch feel. Adding it to the bar wall is a very popular application because it protects the wall from people kicking and smudging the paint while they’re sitting at the bar. For a quick fireplace makeover, try using sheets of ledger stone to give any fireplace a quick facelift with a more modern look.
Stonework has been linked to humans since the days of prehistoric peoples living in caves. Its telluric character is understood as our connection to the earth.”
THE STONE HUMAN CONNECTION
Stonework has been linked to humans since the days of prehistoric peoples living in caves. Its telluric character is understood as our connection to the
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Color varies greatly from stone to stone, adding to its beauty, but you will need to pay extra attention when selecting each piece. ... When natural stone is being used in a fireplace design, you may need to hand-pick each stone one at a time to ensure the stonework looks cohesive and to control color selection.”
earth. From the Egyptian pyramids to the Greek temples and other ancient stone monuments around the world, there is no denying humans have an unspoken connection to natural stone. Because of this connection, using natural stone in interiors connects the earth to humans, creating intrigue and adding familiarity. TIMELESSNESS AND BEAUTY The fad-driven materials on the market may cost less than natural stone, but they can begin looking old and dated quickly. Natural stone, however, will hold its value longer, if not forever, because it adds a timeless beauty to any design. Because no natural stone is ever the same, it adds interest and
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elegance. It gives any design a bold and custom feel, adding sophistication to the home. In a competitive real estate market, a high-quality material such as natural stone can and will set your property apart from others. VARIATIONS Natural stone comes in all shapes and sizes. Examples include travertine, sandstone, bluestone, limestone, onyx, and basalt. Color also varies greatly from stone to stone, adding to its beauty, but you will need to pay extra attention when selecting each piece. Natural stone slabs such as marble or granite must be placed side by side during selection to ensure the colors coincide. When natural stone is being used in a fireplace design, you may need to hand-pick each stone one at a time to ensure the stonework looks cohesive and to control color selection. Being aware of each stone’s condition is also important. Because natural stone is extracted from the earth using forceful measures, some stones can be damaged. DURABILITY Natural stone’s durability should be one of its top-selling points for incorporating it into your next design. Natural stone is easy to maintain, and most can be cleaned up quickly with just a damp cloth or sponge. Although natural stones are typically stain resistant, confirm that before purchase. Stones such as marble are more porous and will stain over time. Sealers are available to protect natural stone from stains and to bring out
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