3. PROFIT AND FLEXIBILITY. Despite higher finance costs, the return on equity invested is greater with leverage, and refinancing remains an option as the market evolves. High-interest rates might deter some, but waiting for rates to drop could mean missing out on opportunities. Although high-leverage loans come with higher costs, they are still a viable strategy for investors looking to grow their portfolios.
GETTING STARTED Investors should ask the right
questions to maximize returns on investment properties. Loan types vary in terms, rates, penalties, and schedules. Kiavi’s platform allows investors to input property details to explore various loan options, including adjustable or fixed-rate mortgages. Leverage is a strategic way to scale a real estate portfolio and achieve high returns with minimal upfront investment, even in high-interest environments. As long as investors manage debt responsibly and make timely payments, leverage remains an effective tool for portfolio growth.
With more than $12.3 billion in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors (REIs). Kiavi harnesses the power of data and technology to offer REIs a simpler, more reliable, and faster way to access the capital they need to scale their businesses. Formerly known as LendingHome, Kiavi is committed to helping customers revitalize the approximately $25 trillion worth of aged U.S. housing stock to provide move-in ready homes and rental housing for millions of Americans across the country. NMLS ID #1125207
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