Why Are Rental Loans (Buy and Hold) so Popular among Real Estate Investors?


It’s no secret that rental properties are a big investment for many Americans. According to the Census Bureau’s last report, there are over 20 million rental properties in the U. S. With a hot real estate market, first time home buyers are being priced out. This is creating a high demand for rental properties and investment opportunities. A Rental Loan helps real estate investors acquire investment properties at a fast pace.


If you’re looking for a rental loan to help you invest in a property, check out these 3 reasons why rental loans are in demand. 

1. Rental Loans Help Finance Your Purchase

Rental loans owe their popularity to the fact that they give investors the ability to buy a property they could not afford on their own. Financing a property can lead to passive income streams and generational wealth.


If you have decent credit (680 fico or higher), plus reserves you can jumpstart your landlord business by securing several rental loans from a Private Money or Hard Money Lender.


It’s always a good idea to establish a long-term relationship with a Private Money or Hard Money Lender, who are knowledgeable on ROI and have a strong track record for closing on time. Look for a Lender willing to work with brand new real estate investors.


2. Rental Loans Give You More Options

Not every potential real estate investor has the funds to buy a rental property all cash.


Rental Loans are easier to attain than traditional financing. Residential and Traditional Commercial Financing require strong verifiable income, low debt ratio, paystubs, w9 and tax returns. Sometimes there is a limit on how many properties you can purchase, based on your salary with traditional financing.

Great news! Rental Loans were created specifically for Real Estate Investors and Landlords. These loans are asset based and Does Not require tax returns or pay stubs. No income verification or loan to debt analysis. Having decent credit, reserves to cover the down payment, closing costs and emergency funds for future payment will go a long way. Private Money and Hard Money Lenders usually require the purchase thru a Company (LLC/Inc) not in a consumer name. They will also require an appraisal to determine the as-is value and market rents.

Real Estate Investors can purchase several investment properties if they have enough reserves, and each investment property produces sufficient rental income to cover the mortgage payment plus provide a healthy cash flow. Again, Rental loans are asset based and your personal income is not a factor.

Rental loans are 30 year fixed with a 1-5 year pre-payment penalty and it is fully amortized. These loans can close within 30 days. Quick Real Estate Funding can close within 2-3 weeks, the appraisal and title usually take the longest to complete.


3. Rental Loans Can Help Secure Your Future.

Rental properties can bring in steady returns. It’s a popular way to create passive income and stash funds for savings and your retirement future.  Depending on how many investment properties you own, you may be able to give up your 9-5 job and live comfortably off the rental income. Many Millionaires built their wealth thru real estate investments and house flipping.


The Bottom Line

If you’re interested in investing into a rental property, securing a rental loan can help you afford a property that might otherwise remain out of your reach. This is the right time to focus on Rental Properties, more people are renting at top dollar because they are priced out or low inventory.

Get a free pre-approval letter and closing costs break down at https://www.quickrealestatefunding.com/hard-money-pre-approval/

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