Single vs Multi-Family REOs
Apart from market forces, the value of single family homes is a typically not a function of rental value, but things like type, size, age, condition, layout & design, neighborhood, etc.
We invest mostly in 2,3,4 unit properties because the values are mostly a function of cash flow. In a soft resale market (and strong rental market), the risks are lowest, profit margins the best, profit erosion less likely, and losses very unlikely.
Now that the resale market is firming up we have renewed interest in single family dwellings, preferably SFDs that need small rehab, cosmetic work only. You can request a financing quote - 50-100% x cost options - here.
Refinancing an REO
You do not have to do this with a home loan. We can refinance any time with a commerrcial loan without title seasoning on terms that are almost as good as home loans! 65%ltv, rates of 5% approx. Must be non-owner occupied.
Going to the next REO without sale or refi
We have lenders that will cross-collateralize so you can use the (newly created) equity in the current REO (and other property), but you must rent this property out. Up to 80% x cost.
Keep your stock portfolio and invest in RE
A securities-based credit line lets you tap the value of your portfolio without selling your securities. You can keep your stocks working for you, whilst borrowing against them for other investments, reserves, or other needs. Info
Open for business - Anything 1-4 family:
1. Home loans: Fannie/Freddie/FHA, etc. Info
2. Construction and rehab loans: Up to 80% x cost. Info
3. REO funding: Up to 100% x cost. Info
4. REO investments: Low risk, high returns. Info
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