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Property investment loans for hard-to-qualify borrowers with assets as collateral

Updated: Sep 18, 2021


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Property investment loans for hard-to-qualify borrowers with assets as collateral


Our long-term loan is designed for investors looking for a low LTV loan with better terms than hard money financing. Perfect for buy-and-hold investors with derogatory credit issues and high equity who are seeking quick and easy credit qualification, the Fast50 loan is available in a 3-year or 30-year term.


These real estate loans are available for property types:

· Investor 1 to 4 (SFR, Condo, and 2-4 units).

· Multi-family (5+ units)

· Mixed-Use

· Commercial (Office, Retail, Warehouse, Self-Storage, and Automotive).


Benefits:

· This is an excellent option for real estate investors who have recently filed for bankruptcy or received a default notice.

· No seasoning of ownership is required.

· Improved pricing compared to our Flex-Perm program.

· It's ok to have a bad mortgage history.

· Available as a 3-year-fixed or 30-year-fixed loan, each amortized over 30 years.



A form of asset-based lending emphasizes an asset's value or earning potential rather than the borrower's finances when underwriting a loan. This type of funding has proven invaluable for borrowers with poor credit histories in the commercial real estate investment world. Typically, these borrowers/investors are interested in residential financing projects with 1–4 units, multi-family buildings, mixed-use, and small commercial properties.


A form of asset-based lending emphasizes an asset's value or earning potential rather than the borrower's finances when underwriting a loan. Investors in commercial real estate with less than perfect credit histories have found this type of funding helpful in their endeavors. Typically, these borrowers/investors are interested in residential financing projects with 1–4 units, multi-family buildings, mixed-use, and small commercial properties.


What are the critical differences between asset-based lending and traditional bank financing?


Asset-based lending uses a property's earning potential as collateral. Non-bank financial institutions that offer asset-based financing are frequently direct portfolio lenders specializing in investment property lending.


Many lenders will take on the risk of a loan based on assets if they have enough collateral in residential real estate holdings.

As a result, asset-based lenders can qualify investors who might not otherwise be eligible for a traditional bank loan.


In the Northeast, for example, a successful fix-and-flip investor may find it challenging to acquire, renovate, and sell properties during the winter, resulting in irregular income. Entrepreneurs starting new companies may not have a long credit history or detailed financial statements when buying a warehouse for their operations. When an investor's income is inconsistent or undocumented, it can prevent them from getting a traditional bank loan.


When closing a real estate deal to take advantage of an investment opportunity or grow your business, the last thing your customers want is a complicated process that causes frustration and anxiety. However, dealing with government-sponsored organizations, such as Fannie Mae and Freddie Mac, or large banks subject to depository restrictions, often results in disappointments and delays that stifle deals. Words like cumbersome and document-intensive are frequently used to describe the process.

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