Investing in Rental Properties - Non-QM Mortgage Lenders

This guide covers investing in rental properties for real estate investors. The coronavirus outbreak and scare have plummeted the U.S. economy. This holds especially true with real estate. The U.S. economy before the coronavirus pandemic was stronger than ever. Home values were increasing year after year. Many lenders created and implemented alternative mortgage programs. Specialty loan programs were created for real estate investors for the first time since the 2008 financial crisis. Dale Elenteny, a senior loan officer at Gustan Cho Associates and an investment home expert, explains how the coronavirus political scare shook up real estate investors investing in rental properties:

The residential home market was booming, and many investors started investing in real estate. Many investors started purchasing investment real estate for the first time since the 2008 housing collapse. Real estate investors enjoyed steady appreciation, easy financing, and a strong rental market.

Many lenders launched non-QM loans for real estate investors. Bank statement loans, asset depletion, and other investment mortgage programs were launched. Countless other loan programs helped the fast-growing investment market for real estate investors. Then the coronavirus pandemichit the U.S. The U.S. economy tanked due to the pandemic. Over 22 million Americans filed for unemployment in the past three weeks. Many Americans had economic impacts that they could not pay their mortgage or rental payments. With many renters unable to pay their rent, it is now affecting real estate investors. In this breaking news article, we will discuss and cover investing in rental properties and the selection of financing options available.

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Rental Property Owners, Lenders, and Renters

The coronavirus pandemic has created major chaos in the multi-family rental market. Affected are renters, rental property owners, and renters. Over 22 Americans have filed unemployment claims in the past three weeks. Unemployment claims are expected to skyrocket in the coming weeks.

All restaurants, bars, and non-essential businesses have been ordered closed until further notice. As days pass, the economic damage is devastating. The economy needs to open and open fast. Americans are protesting throughout the country, demanding the government open the economy. With millions of Americans unemployed, they do not have the means to pay their monthly rent.

Smaller rental property owners are the ones that are the hardest hit. Mom-and-pop rental property owners do not have tens of thousands in reserves. They depend on rental revenues to make their mortgage payments and expenses. Many government agencies have introduced eviction moratoriums to add more stress and financial hardship to rental property owners. Local, county, or state governments have established eviction moratoriums during the coronavirus crisis. The team at Gustan Cho Associates is getting countless calls from rental property owners asking us for assistance investing in rental properties. Many want to see if they can do a cash-out refinance. Others are just asking for professional advice. Yet others are asking us for a referral for a bankruptcy attorney.

How Coronavirus Scare Affected Investing in Rental Properties

Rental property owners of apartment buildings are the most affected due to the coronavirus pandemic crisis. Most renters live paycheck to paycheck with little to no reserves. A large percentage of the 22 million unemployment claims are renters. With their wages halted it will be difficult for unemployed workers to pay rent. City, county, and state governments have issued a freeze on evictions.

Governors have placed A halt on evictions for at least 90 days in most states. With no revenues from rent, many landlords cannot pay their mortgages, utilities, taxes, insurance, and other expenses. The coronavirus pandemic economic crisis also affects larger landlords.

Many large companies, such as Dick’s Sporting Goods, the Cheesecake Factory, and others, have suspended paying rent to landlords. These rents are larger amounts that can devastate larger landlords of shopping centers and strip malls. If a real estate investor owns a few rental units, they may be able to scrape by. However, if the investor has dozens of rental units, the investor may get hurt financially. The main reason investors get financially devastated is due to liquidity issues. Smaller investors do not have business lines of credit to tap into. Countless rental property owners are stressing as we speak.

Issues and Solutions Facing Investors Investing in Rental Properties

If the property owner has a mortgage on the rental property, there is little room for cash flow. Smaller mom-and-pop investors rely on the cash flow of the property to survive. Many investors do not have a large amount in reserves to be able to pay the mortgage and expenses. The coronavirus pandemic crisis is most likely plummeting the real estate market. Therefore, taking out a second mortgage and doing a cash-out refinance can be explored but is not likely. There is a domino effect with the coronavirus pandemic crisis.

With renters losing their jobs and taking significant pay cuts, they cannot pay their rent. Property owners cannot collect the rent, so they cannot make their mortgage payments. The landlord cannot evict the tenant due to the eviction moratorium. The landlord needs to work out a payment plan with the tenant. The property owner needs to contact the lender. The lender may give the property owner a forbearance.

Forbearance is not free money. The lender can give the property owner a forbearance for several months. However, the full amount is normally due after the forbearance period. However, lenders can often give a payment plan to pay the missed payments. If the property owner cannot pay the mortgage or forbearance missed payments, they can request a loan modification or a workout. The lender does not have to grant a loan modification. However, more lenders may be open to a loan modification. This holds true during a major financial crisis like the coronavirus pandemic.

Mortgages For Investing in Rental Properties

Many people investing in rental properties and other types of real estate due to the great mortgage programs. Non-QM loans became very popular. It took some time after the 2008 financial crisis to launch alternative types of financing for investment properties. Fix and flip loans became very popular. So did asset depletion loan programs, as well as bank statement loans.

All non-QM investment loan programs and commercial loans are back in full force. Gustan Cho Associates has merged with Lending Network, LLC to be able to do commercial, business, and equipment financing loans. The halt in investment property mortgages was due to the coronavirus pandemic.

Many non-QM lenders went bankrupt, while others closed their doors until further notice. Sprout Mortgage reopened operations. However, they did change their credit guidelines. Lending Network, LLC requires a 30% down payment or 70% LTV on private and hard money loans. The team at Gustan Cho Associates is optimistic that non-QM loans will return. We will keep our viewers posted once alternative financing on investment properties returns. Gustan Cho Associates and Lending Network, LLC are premier lenders for investors investing in rental properties.

Building Wealth with Real Estate: Best Places to Buy Turn Key Rental Properties

Are you looking to build your wealth through real estate investments? One of the best ways to do so is by purchasing turnkey rental properties. These already renovated and rented-out homes can provide a steady stream of passive income while appreciating value over time. But where are the best places to buy these investment opportunities? In this blog post, we’ll explore some top locations for turnkey rental properties and why they might be worth considering for your portfolio. Get ready to take notes and start building your wealth with real estate!

Introduction to Turn Key Rental Properties

If you’re looking to build wealth through real estate investing, buying turnkey rental properties is one of the best ways. Turnkey rental properties are investment properties already generating income, so they can be a great way to get started in real estate investing without having to go through the hassle and expense of fixing a property yourself. However, there are a few things to remember when looking for turnkey rental properties. First, you’ll want to ensure you’re buying in a good location. A property in a desirable area is more likely to appreciate over time, which will help you build equity. Second, you’ll want to ensure the property is well-maintained and in good condition.

Property Condition

A well-maintained property will help ensure that your tenants are happy and that you won’t have to spend much on repairs and maintenance. You’ll want to make sure the property is priced right. You want to avoid overpaying for a property just because it turns key-remember, your goal is to make money on this investment, not lose money! If you keep these things in mind, you should be able to find some tremendous turnkey rental properties that will help you build wealth over time.

Benefits of Investing in Rental Properties

If you’re looking for a hands-off investment that can generate passive income, turnkey rental properties are a great option. When you purchase a turnkey rental property, the previous owner has already done all the work to renovate and get the property ready for tenants. All you need to do is find a tenant and collect the rent. There are several benefits to investing in rental property

Passive Income

Turnkey rental properties can provide a steady passive income stream. Passive income is beneficial if you want to retire early or supplement your current income.

Low Maintenance

Since the previous owner has already done all the renovations, turnkey rentals require very little maintenance. You won’t have to worry about fixing up the property every time a tenant moves out.

High ROI

Turn essential property rentals typically have high ROI potential due to the low initial investment and increased demand for rental units.

Flexibility

Turnkey rentals offer much flexibility regarding how you want to manage them. You can choose to be as involved or uninvolved as you want in the day-to-day operations.

Which Cities are the Best Places For Investing in Rental Properties?

Many cities across the country make great places to buy turnkey rental properties. If you’re looking for the best places to buy turnkey rentals, a few cities stand out above the rest. Here are just a few of the best:

Investing in Rental Properties in Indianapolis, Indiana

The Indianapolis housing market has rebounded recently, making it a great place to invest in rental properties. There is a strong demand for rentals in the city, and prices are still relatively affordable. Indianapolis has a strong economy and is snowballing. Additionally, the average rent price in Indianapolis is quite affordable.

Investing in Rental Properties in Detroit, Michigan

The Detroit housing market has also rebounded recently, making it another great place to invest in turnkey rentals. The city offers a wide variety of rental properties, and there is a strong demand for rentals. Prices are also very affordable.

Investing in Rental Properties in Memphis, Tennessee

Memphis is another city with a strong demand for rentals. The city offers various rental property types, and prices are very affordable.

Investing in Rental Properties in Atlanta, Georgia

Atlanta is yet another city with a strong demand for rentals. The city offers various types of rental properties, and prices are reasonable.

Investing in Rental Properties in Pittsburgh, Pennsylvania

Pittsburgh, PA, is one of the best places to buy turnkey rentals. The city has a strong economy and a population that is growing steadily. The average rent price in Pittsburgh is also relatively affordable, making it a great place to invest in rental properties.

Investing in Rental Properties in Cleveland, Ohio

Cleveland, OH, is another fantastic city for investing in turnkey rentals. The city has a diverse economy and a large population. Additionally, the average rent price in Cleveland is very affordable.

All of these cities offer great opportunities for investing in turnkey rentals. Also, studying the surrounding area of these cities are great places to investigate. If you’re looking for somewhere with a strong economy and affordable rents, then any of these cities would be a great choice.

What to Look for When Buying a Turn Key Rental Property

When you’re looking for a turnkey rental property, there are a few things you’ll want to keep in mind. First, you’ll want to find a property in a good location. This means it should be in a safe neighborhood with good schools and easy access to public transportation.

You’ll want to ensure the property is in good condition. This means it should be well-maintained and updated, with no significant repairs needed. You’ll want to ensure the rental price aligns with similar properties in the area.

Again, turnkey rental properties can be a great way to invest in real estate and build wealth. By keeping these things in mind, you can help ensure that you find a turnkey rental property that meets your needs and fits your budget.

How to Maximize Return Investing in Rental Properties

There are several strategies that investors can use to maximize their return on investment (ROI) when purchasing turn fundamental rental properties. One of the most important things to do is to carefully research the market and choose properties likely to appreciate over time.

Another way to maximize ROI is to carefully screen tenants and choose those most likely to pay their rent on time and take care of the property. Additionally, it’s important to keep operating costs low by choosing energy-efficient appliances and systems and maintaining the property regularly.

By following these tips, investors can maximize their ROI when purchasing turn key rental properties. There are many ways to maximize return on investment (ROI) when turning key rentals. One of the best ways to do this is to select the properties you invest in carefully. Another way to maximize ROI is to keep your properties well-maintained and updated. Here are a few tips on how to maximize ROI with turnkey rentals:

Do Your Research

When it comes to investing in turnkey rental properties, it’s important that you do your research. This means taking the time to learn about different markets and determining which areas will likely offer the best ROI. It’s also important to research specific properties before making an offer. Another key strategy is to purchase properties that need some repair or updating; by investing in these properties, investors can often get them for a lower price and then increase the rent once the repairs have been made.

Invest in High-Quality Properties

It’s also important that you invest in high-quality properties if you want to maximize ROI. This means properties that are well-built and located in desirable areas. It’s also a good idea to invest in property that is already generating rental income.

Managing Rental Properties

Another way to maximize ROI is by keeping your properties well-maintained. This means regularly checking for necessary repairs and ensuring the property is always clean and presentable. By doing this, you can help ensure that your tenants are happy and that they renew their leases each year. There are several ways to maximize return on investment (ROI) with turnkey rentals. One way is to select the properties you invest in carefully. Another is to manage the properties efficiently.

How To Buy The Best Rental Properties

To select the best properties, consider looking for low-crime areas that are growing or have growth potential. This could be a new development in a city or an up-and-coming neighborhood. Thoroughly research the property and the market before making an offer. Be sure to understand all of the expenses associated with the property, such as taxes, insurance, and repairs/updates that may be needed. Get pre-approved for a loan and compare interest rates before selecting a property. Choose a loan with terms that fit your investment strategy.

Hiring Property Management Company

If you plan to self-manage the property, research the time and effort required to do so effectively. If you hire a property management company, get referrals and compare costs. Once you’ve selected the best properties, there are several things you can do to maximize ROI: Screen tenants carefully:

Thoroughly screen all potential tenants using credit checks, criminal background checks, and job history verification. This will help ensure you have quality tenants who pay rent on time and take care of your property.

Keep repair and maintenance costs low. Get your vendors in place or partner with a property management company with reliable, cost-effective maintenance specialists on board.

Strategies for Finding Deals on Turn Key Rentals

There are several strategies you can use to find deals on turnkey rentals. The first is to look for properties sold by motivated sellers. This could be someone facing foreclosure, a divorce, or moving out of state. Another strategy is to look for properties that need significant repairs.

Properties that need repairs properties usually be priced below market value, allowing you to profit by fixing them up and renting them out.

You can also look for government-owned foreclosures. These properties are often available at a significant discount and can be a great investment. Several strategies can be employed to find good deals on turnkey rental properties. The following are some of the most effective:

Network with other investors

This is the most important strategy, as it allows you to tap into the collective knowledge and experience of others who have likely already gone through the process of finding and acquiring turnkey rentals. Networking with other investors lets you learn about different markets, locate good deals, and avoid making costly mistakes.

Use a Real Estate Agent Investing in Rental Properties

A good real estate agent will have extensive knowledge about the local market and can help you identify potential turnkey rental properties that meet your investment criteria. Be sure to interview several agents and ask for references before selecting one to work with.

Search Online Listings Investing in Rental Properties

Several websites list turn key rentals for sale, such as Realtor.com and LoopNet.com. By searching these listings, you can get a feel for what properties are available in different markets and at what price points.

Attend Foreclosure Auctions

Foreclosure auctions are a great source of deeply discounted properties, including turnkey rentals. However, it is important to do your homework before bidding on any property, as hidden damage or other issues may make the property less than ideal as an investment.

Having a Realtor and Lender Help Investing in Rental Properties

There are many benefits to having a Realtor and Lender help you with your rental investment. They can provide expert advice on the best places to buy turnkey rental properties, how to finance your investment, and how to manage your property so it is profitable. A Realtor can help you find the right property at the right price. They have access to MLS listings and can help you negotiate a fair price.

A Lender can help you finance your investment by providing a loan or line of credit. Some Realtors or Lenders can also help direct you to property management or help you manage your property by providing advice on tenant screening, rent collection, and maintenance. Again, If you’re looking to build wealth through real estate investments, one of the best ways to do it is to buy turnkey rental properties.

When you’re ready to start looking for a property, it’s helpful to have a Realtor and lender who can help you with the process. Another factor in having a Realtor on your team is they can help you find the right property, negotiate the purchase price, and get the best possible deal on your investment. They can also help you navigate complex zoning regulations and building code requirements.

A lender can help you secure financing for your investment at the best possible terms. They can also help you understand how much you can spend on a property based on your financial goals and objectives. A team of professionals helping you with your rental investment will make the process easier and less stressful. And it will give you the best chance of success in building wealth through real estate investing. If you’re ready to start investing in rental properties, team up with a Realtor and Lender who can help you through the process.

Is Investing in Rental Properties a Good Investment

To build wealth with real estate, purchasing a turnkey rental property can be a strategic way to invest. With many cities and states offering great investment opportunities, it’s important to research to find the best place that suits your needs. The market can be unpredictable sometimes, but if you remain patient and watch for areas set up for success, you should have no problem finding the right turnkey rental property to help you get on the road toward financial freedom.

Is Right Now a Good Time For Investing in Rental Properties

Real estate investment is a great way to build wealth for your future. If looking for the best places to buy turnkey rental properties, consider researching markets with high potential cash flow and low vacancy rates. With careful due diligence and strategic investments, you can create long-term financial stability through real estate investments in turnkey rental properties.

If you should decide to buy, before you begin looking for a home and during the process, we have vast experience working with buyers to get them ready to purchase their dream home. We can take you through your home loan’s entire buying and financing process. We also can connect you to title companies/attorneys and real estate agents in your area that can help as needed.

Call or text Ronda Butts at 407-460-7999 or email at ronda@gustancho.com for more information and further assistance. Ronda is an experienced referral agent, a dually licensed real estate agent, and a mortgage originator. She has successfully guided many homeowners through obtaining a home on both the lending and real estate side. She does not represent buyers or sellers but offers free consultation in 48 states at Gustan Cho Associates by connecting homeowners, buyers, and sellers to the needed sources.