Buy, rehab, and rent out your next investment property with Washington Capital Partners.
When you find the right property to add to your portfolio, the last thing you want is for a lender to drag their feet or simply not offer a program designed for your investing strategy. Other lenders will offer funds for the purchase and rehab of a property, but they will put it on you to figure out how to pay off the loan without selling it. Lenders without a dedicated flip to rent loan program will often turn away investors looking to hold their properties for passive income after renovations are complete without having to refinance, and that’s what makes us unique.
When you take a fix to rent loan with us, you’ll get:
- The option to extend your loan at a lower rate so that you can build a history of property performance, a.k.a. “seasoning” the property, so that you can refinance with a traditional bank
- Hybrid funding options for a variety of property type and levels of rehabbing required
- A dedicated specialist that focuses on rental property investments and funding
- Quick approvals up to $5 million in as little as 48 hours
- Free underwriting on all of your deals
There can be plenty of hurdles when it comes to finding and rehabbing the right rental property, don’t let funding become one of them. Let us be your partner so we can worry about financing while you focus on what you do best. Contact us today for a free, no-risk consultation and quote.
Answers to Your Questions About Flip to Rent Loans
What is the difference between these and fix and flip?
A Fix and Flip loan is is either paid off with the sale of the property or refinanced by another source of capital, typically within a 12-month term. You also do not plan on keeping the property so as a tenant moves in or signs a contract, the lender expects payment quickly. The funding option for a rental property is designed to support you by extending the lifetime for an additional 6 to 12 months so you can build enough history before you refinance with a large bank who will typically offer lower rates for a stable (seasoned) rental property.
What are the risks associated with this type of funding?
The main risks with a Flip to Rent loan include:
- You have no guarantee that your property will rent for the exact price that you expected before renovations began
- If you have a tenant that doesn’t pay, your property could be considered “non-performing” by a bank, and you may not be able to refinance to a lower rate until you find a new tenant
- Typically, you will be paying a higher interest rate until a bank determines that your property meets their lending requirements
- If you can’t find tenants, you may have to sell the property to pay off your loan
Do I need good credit?
No. While credit does play a part in determining the risk to a lending institution, hard money lenders place much more weight on the property deal itself. Your portfolio, equity in other properties, liquid assets and past investing history are all important factors that can offset a bad credit history. You can absolutely still get a flip to rent loan and begin building or adding to your portfolio with bad credit.
Can I roll into a long-term fixed rate?
This will depend on the lender. Some lenders, like banks, offer more traditional mortgages while private lenders that can offer you faster funding may require quicker payoffs. This is why we developed a model specific to your needs with a purchase, rehab, and rent system so that you can get an extension to build enough history so that the banks will be more inclined to give you a long-term mortgage with a lower and fixed rate.
What can this be used for?
This loan can be used to acquire and renovate single-family homes, condo conversion, or large multifamily or mixed-use properties. The goal is to provide you with the tools you need to build your rental portfolio.