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Rental property

Rental property loans, and choosing the right one

Buy-and-hold financing is not one product. Which one you want depends on whether you are buying, holding, pulling equity out, or fixing a property before anyone will let it — and picking the wrong one wastes weeks.

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Choosing between the products

This is the question most rental enquiries really need answered, so here it is plainly. Each of these links to the detail if you want it.

Buying a rental that is ready to let

A rental loan qualified on the property's coverage. Start with DSCR loans, which is how that coverage is measured.

Holding long term after short-term money

The planned exit from a flip or bridge when you decide to keep the property. See long-term rental financing.

Releasing equity from one you own

A cash-out refinance raises capital without giving up the asset.

A property that needs work first

Not a rental deal yet. It is a rehab or bridge deal until it can be let.

What every rental file is judged on

Whichever product you land on, the lender is asking the same underlying question: does this property pay for itself, reliably, with enough margin that a bad month does not become a default?

The rent, evidenced

A signed lease is the strongest form. A market rent opinion is acceptable but weaker.

The real costs

Taxes, insurance and association dues at actual figures. This is where most borrower spreadsheets and lender underwriting part company.

Vacancy and maintenance assumptions

Assume both. A model with neither signals inexperience more than anything else in the file.

Your portfolio and reserves

How many you hold, how they are financed, and what cash remains after closing.

Single rentals versus portfolios

Once you hold several properties the arithmetic changes, and so does the sensible structure. One loan across a portfolio can be cleaner to manage and harder to unwind; separate loans are more paperwork and far more flexible when you sell one.

Separate loans

Easier to sell or refinance a single property without disturbing the rest.

Portfolio loans

One payment, one lender, typically fewer closing costs in aggregate — but releasing an individual property is more involved.

Entity structure

Holding in an LLC is normal on investor products. Bring the entity documents with the application.

Before you pick a product, gather this

The right product follows from what the property is currently doing, so these few facts decide the route far more than any preference you arrive with.

Tell us about this deal

No fee to submit it, and no obligation once terms come back.

Questions investors ask about this product

Which product should I ask for?
Tell us what the property is doing rather than naming a product. Whether it is let, needs work, or is being refinanced determines the answer, and getting that wrong is what wastes time.
Do I need to own other rentals already?
No, though experience helps on pricing and leverage. A first rental with a signed lease and sound coverage is a normal file.
Can one loan cover several properties?
Yes, as a portfolio loan. Send the list with values, debt and rents and we will tell you whether one loan or several serves you better.
Will you quote me a rate?
No. Rates, points and leverage come from the lender after they have read the file. Anyone quoting before that is guessing.

Before you apply

We are a connector, not the lender. We place your deal with private and hard money lenders who fund this profile; they underwrite it, approve it and set the terms. We will not quote a rate, points or leverage before a lender has read the file, and we do not use the word approved. If the deal does not fit private lending, we would rather tell you on the first call — see how the process works for the short version.

Other financing we place

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