The Five Star FORCE recently hosted a webinar on financing options for housing market investors, speaking on how establishing a relationship with a private lender is a highly effective way to support the clients that are most likely to acquire your assets, while generating extra revenue in the process. The webinar titled, "Connecting the Dots: Turn Over Inventory Faster with Private Lending" and presented by RCN Capital discussed how establishing a relationship with a private lender can become a highly effective way to support the investor clients that are most likely to acquire an REO asset, while generating extra revenue in the process for the REO agent.The webinar was presented by RCN Capital CEO Jeffrey Tesch.
As the gatekeeper for these assets, having financing options for clients that invest in single-family homes, condos, townhomes, and multifamily properties are necessary to grow your business. Listeners found out how establishing a relationship with a private lender is a highly effective way to support the clients that are most likely to acquire your assets, while generating extra revenue in the process.
Tesch stated that single family investors are blowing up, noting that 7.2% of all home sales in Q1 2019 were flips, and 37.5% of these flips were purchased with financing. According to Tesch, single family rental needs to be considered, as U.S. single-family rent prices increased 3.0% year over year in April 2019.
“You as REO managers and real estate professionals, have the inventory that investors are looking for,” said Tesch.
Residential loans, or owner occupied loans, do not comply with investor needs. Instead, investors can take advantage of commercial loans for residential homes, if they are non-owner occupied. Typical loans include investor and flip financing, long-term rental property financing, ground-up construction financing, bridge financing, and build-to-rent financing.
One example of a loan Tesch covered was a short term fix and flip loan. Short term fix and flip loan offer financing for both the purchase price and the renovations costs, with a LTV not to exceed 75%.
Listen to the complete webinar recording here.