Requirements to get qualified for rental loans in Massachusetts
To get a private loan for a rental property investment in Massachusetts, you can apply through private lenders like Asset View Capital. Asset View Capital offers flexible, short-term, and long-term, asset-based loans that focus on the property's potential revenue rather than your personal credit and income from W2 employment. For long-term financing, a private lender like Asset View Capital also offers Debt Service Coverage Ratio (DSCR) loans for qualifying rental properties.
How to find multifamily properties in Massachusetts
Online property directories: You can find local multifamily property listings on directories like Zillow, Hubzu, and Realtor.com. Could you narrow your search to Massachusetts?
Local real estate agents and brokers: Contact local realtors nearby. These real estate professionals can help you in your search for properties that are for sale in your area.
For sale by owner: Another way to find multifamily properties for sale in Massachusetts is to watch for direct sales from owners.
Bank foreclosure properties: Buying foreclosed properties from the banks could give real estate investors opportunities to find good deals. Though some foreclosed properties may need some touch-ups, you could build some quick equity into the properties.
Common private lending options
Bridge loans: This is the most common type of private loan for investors.
Best for: Short-term projects like buy-and-hold, fix-and-flip properties, construction, or rehabilitating a distressed rental property.
Qualifying factors: Asset-based, after-repair value, and potential rental income that could determine a higher income and low debt coverage ratios
What to expect: Expect a higher property valuation after holding or renovating such property.
DSCR loans
This type of financing is ideal for long-term rental properties.
Best for: Real estate investors with cash-flowing rental properties.
Qualifying factors: Your eligibility is determined by the property's Debt Service Coverage Ratio (DSCR), which is the rental income divided by the mortgage payment and other property expenses.
What to expect: Qualification does not require you to provide personal income details through tax returns or W-2s, but the property's cash flow must be sufficient to cover the debt obligations.
What to prepare for your application
To be considered for a private loan, be ready to provide a solid investment plan and information about the property.
Investment plan: Lenders want to see a clear repayment plan, which could be through refinancing into a long-term loan or by selling the property.
Property details: Be ready to provide the purchase price, the property's current and after-repair value, inspection reports, and photos.
Borrower credentials: While personal income may not be the primary focus, lenders will still look at your credit history and investment experience. Some may require a minimum credit score. For hard money, lenders often require an LLC or corporation.
At the heart of our future investment is through multifamily investments. Build value and wealth for today and tomorrow.
