The #1 Hard Money Lender for 30 year Rental Loans – Investment Property Loans since 1998
The best option to refinance a hard money loan into a long term 30 year rental loan
We specialize in BRRRR Loans and DSCR Loans
30 Year Rental Loans For Investment Properties
30 Year Rental Loans are a very helpful tool for investors that want to buy a rental property without all the red tape from a bank. They can also be refinanced and cash out using the BRRRR method after completing a rehab on their property. This is the most suitable loan for landlords. This program works well for those investors looking to portfolio multiple cash-flowing rentals. We do not look at your personal income, rather the property income (debt service ratio) to figure out how much we can lend on that particular property.
Refinance a Hard Money Loan
Have you found yourself at the end of your short term bridge loan and you need to refinance a hard money loan? This is the right product for your investment property loan. It allows you to move from high interest rate short term money to a long term lower rate 30 year rental loan. It has become quite popular to refinance a hard money loan into this loan product over the last few years.
Can you refinance a hard money loan? The short answer is yes. However, you should read your closing package for your hard money loan to see if you have a prepayment penalty on that loan. Most short-term hard money loans do not have a prepayment penalty, however there are some that do. The cost of this penalty could be prohibitive if you don’t wait for that penalty term to expire.
How quickly can you refinance a hard money loan? This all depends on who the lender is. Some lenders, like banks, can take 30-60 days to close your loan. While some hard money lenders drag their feet on this type of loan and close in 4-5 weeks. We can refinance a hard money loan for you into a 30 year rental loan in as little as 2 weeks.
Are you looking to rehab and then rent? Use our ARV Fix and Flip loan product and then roll your loan into this program as a long term hold.
How to get a 30 Year Loan for your investment property
1. Make sure you are ready on your end – cash down payment (at least 20% down) and credit worthy.
2. Find a property in an area that has high rental incomes vs purchase prices. Many investor areas support the 1% rule. The 1% rule says you should be getting 1% of the purchase price per month in rental income.
3. Find a lender, like HardMoneyMan.com LLC, that specializes in lending to investors (not homeowners).
4. Make sure you have all of the numbers needed to evaluate your deal – purchase price, rental income based on 12 month market rents (as well as the current rent on the property), yearly property taxes and yearly property insurance.
5. Contact your lender to run the property debt service numbers (known as DSCR), to find out how much debt (mortgage) this property can handle.
Long Term 30 Year Landlord Loans
This is unlike any other soft money program on the market today. Closing times in as little as 15 days, credit scores from 660 and up and loan amounts from 75K and up.
If you’re looking for a 30-year product – fixed rate, 5/6.7/6 or 10/6 ARV we have what your looking for! Fill out the application on this page to get your deal priced out . This is for 1-4-unit residential properties, townhouses and condos ONLY. No commercial or owner-occupied homes allowed.
30 Year Loan Highlights
- Most competitive market rates out there!
- 660+ Mid Credit Score required
- Property Types – Single Family, 2-4 unit, Condos, Townhouses
- Closings in 15-20 days
- Approvals in 30 minutes or less
- Available in 45 states + Washington DC
- Single properties or portfolio loans available
- Bank Statements only – No borrower DTI requirements (no tax returns, no paystubs to qualify)
- Non-Owner-Occupied properties only (no homeowner loans)
- 1.2 DSCR Requirement
- Seasoning requirement 90 days when there is existing debt on the property (otherwise 180 days)
- “As is” Appraised value must be $100K or greater
- Minimum 75k loan amount – no exceptions
- Loan to values
- Purchase: Lesser of up to 80% of the As-Is Value or Up to 80% Loan-to-Cost
- Refinance: Up to 75% of the As-Is Value
- Cash-Out: Up to 75% of the As-Is Value
What is the BRRRR Method in real estate investing?
The BRRRR method is becoming increasingly popular as a way to invest in real estate. The acronym stands for Buy, Renovate, Rent, Refinance and Repeat, which is the idea behind this strategy.
The first step of the BRRRR method is to find an investment property that needs renovation. Fixing up this property through renovations can add value to it and make it more attractive to potential tenants or buyers. After repairs are completed, the property can be rented out with the intention of creating a reliable passive income stream for the investor.
Once enough money has been made from rental income, the investor then has the option to refinance the loan taken out on their investment property. This process allows investors to use some of their rental income to pay off debt from their initial purchase and release any equity in the property back into their pocket. Once that’s done, they can continue repeating this cycle by reinvesting their profits from refinancing into another real estate opportunity and starting again at Step 1.
The BRRRR method provides investors with a great way to maximize returns on their investments while minimizing risk. Investing in real estate can be an incredibly lucrative business if done right and using this strategy is one way of ensuring success down the road.
How do I calculate the DSCR of my rental property?
The Debt Service Coverage Ratio (DSCR) is a key metric for evaluating the viability of an investment property. To calculate DSCR, divide the net operating income from a property by the total debt service payments associated with it. For example, if a property has an annual net operating income of $100k and an annual debt service payment of $80k, then the DSCR would be 1.25 ($100k/$80k). This ratio is important to lenders as it helps them to determine whether a borrower will be able to service their loan payments on time each month. A higher DSCR is generally seen as more favorable by lenders as it reflects greater ability to repay debts. A ratio of 1.2 or higher indicates that the borrower is capable of paying back their loan and any other related expenses in full and on time. On the other hand, a ratio lower than 1 indicates that not enough income is being generated from the property to cover all associated debt payments.
