Partnering with Investors for Sustainable Cash Flow. As a private lender, we understand the importance of securing stable and affordable financing for long-term rental properties. Our long-term rental financing solutions are designed to help investors like you achieve their goals and build wealth through real estate.
What is Long-Term Rental (LTR) Financing?
At Investors-Lender, we specialize in providing strategic capital solutions for experienced and emerging real estate investors focused on acquiring or refinancing stabilized residential properties leased to tenants on annual (or longer) agreements. Unlike traditional institutional lenders, we understand the unique dynamics of the rental market and offer asset-based financing tailored to the property’s performance and potential, not just the borrower’s personal financial history. Our LTR loans are designed to be the efficient fuel for your portfolio growth.
Long-term rental financing is a type of mortgage loan that allows investors to purchase or refinance a rental property with a stable and predictable interest rate and repayment term. Our long-term rental financing solutions offer flexible terms and competitive interest rates, helping you to maximize your cash flow and returns.
How Our Long-Term Rental Financing Works – A Partnership for Success:
We structure our LTR financing to align directly with your investment goals, focusing on the property’s cash flow and value. Here’s the collaborative process:
- Targeting the Asset: You identify a viable single-family home (SFH), townhouse, or small multi-unit (1-4 units) property with existing tenants or clear potential for stable, long-term occupancy in a solid rental market.
- Streamlined Application & Focus on the Property: You submit a straightforward application emphasizing the subject property.
- Property Details: Location, condition, photos, rent rolls, leases, operating expenses.
- Financials: Current and projected income (rents), expenses (taxes, insurance, maintenance, management), and resulting Net Operating Income (NOI).
- Appraisal & Value: We order a third-party appraisal or Broker Price Opinion (BPO) to establish the After Repair Value (ARV) or current market value.
Asset-Based Underwriting (Our Core Strength):
- Loan-to-Value (LTV): We primarily base our loan decision on the property’s value. We typically offer loans ranging from 65% to 75% LTV on the appraised value. This conservative approach protects both you and us, ensuring a significant equity cushion.
- Debt Service Coverage Ratio (DSCR): The cornerstone of our analysis. We calculate the property’s NOI divided by the proposed monthly loan payment (Principal & Interest, Taxes, Insurance – PITI). We require a minimum DSCR (e.g., 1.20 – 1.25). This means the property generates at least 20-25% more income than needed to cover the mortgage payment, ensuring positive cash flow for you after the loan payment. Strong DSCR = Stronger loan approval chances.
- Experience & Exit Strategy: While less weight than banks, we consider your track record and your clear plan for the loan term (e.g., long-term hold, refinance with a conventional lender later).
Flexible & Efficient Closing:
- Speed: We move quickly, often closing in days or weeks, not months, allowing you to capitalize on opportunities.
- Terms: Loan terms typically range from 12 months to 36 months, providing flexibility. Interest rates reflect the speed, flexibility, and risk profile (competitive within the private lending space).
- Structure: Interest-only payments are common, maximizing your cash flow during the loan term. A balloon payment is due at maturity.
Investor Execution & Partnership:
- Funding: Once approved and docs signed, funds are disbursed, enabling you to purchase or refinance.
- Property Management: Effective management is key to maintaining the DSCR and property value. We expect competent management (by you or a professional).
- Performance: You collect rents, manage the property, and make your agreed-upon interest payments. Strong performance builds a positive relationship for future deals.
- Exit: Near the end of the term, you execute your plan: refinance with a conventional lender (if rates/terms are favorable), sell the property, or renew/renegotiate the loan with us.
Why Partner with a Private Lender for Your LTR Investments?
- Speed & Certainty: Close deals fast, beating competition financed by slow banks.
- Flexibility: We structure deals based on the asset’s merits, not rigid bank guidelines. We can finance non-warrantable condos, unique properties, or borrowers with complex tax situations.
- Focus on Cash Flow: Our DSCR model aligns with your goal – acquiring cash-flowing assets.
- Leverage for Growth: Access capital efficiently to scale your portfolio faster than relying solely on conventional financing or personal capital.
- Bridge to Conventional Financing: Perfect solution for acquiring a property, stabilizing it (if needed), and then refinancing into a lower-rate conventional loan later.
- Expertise: We speak your language and understand the realities of being a rental property owner.
Benefits for Investors
Our long-term rental financing solutions offer several benefits to investors, including:
- Predictable Cash Flow: With a fixed-rate mortgage, you can predict your monthly payments and cash flow with confidence.
- Stable Interest Rates: Our fixed-rate mortgages offer stable interest rates, protecting you from market fluctuations.
- Increased Returns: By financing a significant portion of the property’s purchase price, you can increase your returns on investment.
- Personalized Service: We take a personalized approach to lending, working closely with you to understand your needs and goals.
Why Choose Our Long-Term Rental Financing?
Our long-term rental financing solutions offer several advantages, including:
- Experience: We have years of experience lending to real estate investors, and we understand the unique challenges and opportunities of long-term rental properties.
- Flexibility: We’re willing to work with you to create a customized loan solution that meets your needs and goals.
- Speed: We can close loans quickly, allowing you to take advantage of market opportunities and start generating rental income sooner.
Get Started
If you’re looking for a reliable and experienced private lender to partner with, we’re here to help. Contact us today to discuss your long-term rental financing options and learn more about how we can help you achieve your real estate investment goals.
In Essence:
Our Long-Term Rental Financing is a powerful tool for savvy investors. We provide the fast, flexible capital secured by the income-producing asset itself, evaluated primarily on its cash flow (DSCR) and value (LTV). You bring the investment opportunity and management expertise; we provide the efficient funding solution. Together, we build portfolios that generate sustainable passive income.
