Investor loans provide a unique opportunity to profit from a ‘fix and hold’ rehab, retaining the acquired real estate as an investment property. Above all, the investor loan program is a great opportunity to jump start a long term plan for generating passive income from real estate.
What is an Investor Loan?
An investor loan is a great opportunity to start building wealth quickly from real estate investment property. That said, the loan itself is a combination loan. The first stage, or front end, of the loan is a typical ‘fix and hold’ hard money loan. The second stage, or back end, of the loan is a conventional real estate loan. What makes the investor loan program so special, however, is what happens in between the loan’s two stages, and the way it allows you to leverage your rehabbed equity.
How do Investor Loans Work?
Stage 1: The Hard Money Fix
As previously stated, this real estate investment loan program begins very much like a hard money loan. The hard money loan helps you acquire a distressed property at a significant discount, because of its state of disrepair. The investor loan program doesn’t just cover the cost of the property, however. This particular program covers up to 75% of the estimated after repair value (ARV). You may actually get more money from the loan than the house is worth at the time of purchase.
For example, imagine that you buy a property for $100,000 which has an ARV of $200,000. At 75% ARV, the amount of the loan would be $150,000. This extra $50,000 covers both the closing costs and rehabilitation of the distressed property.
Stage 2: From Hard Money to Conventional
Instead of selling the property at this point, however, the investor loan allows you to keep the property. This is done by transitioning the investor from the hard money type loan to a conventional real estate investment loan.
As a real bonus, when you come out ahead with your appraisal value, the equity (that you built) is used toward the downpayment and closing costs of the conventional loan. Once the transition to conventional loan is complete, and you are the conventional owner of the property, then the goal is to rent the property.
Stage 3: Generating Passive Income
Once you’ve secured the conventional loan (which, guess what, we pre-qualified you for from the beginning), the next step is turn your real estate into passive income.
Here’s the best way to do this. First, rent your property out at a high enough rate that you can pay down the conventional loan, maintain the property, and hire a property management company to manage the property and tenants on your behalf.
How Can I Get Started with an Investor Loan?
Are you looking for the perfect opportunity to start generating wealth through passive income and real estate? Our investor loan program
is the perfect place to start.
Best of all, Noble Mortgage & Investments
makes it easy to get started with a pre-qualification. Simply click the button below to go to our Pre-Qualification form. Follow the instructions and submit.
Need more info? No problem. You can contact us online
or call us now at [phone]. Our loan specialists are standing by to take your call.
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How to Use Investor Loans to Jump Start Your Passive Income | Noble Mortgage & Investments