Investing in Real Estate During a Hot Market

Oftentimes, those looking to invest in properties don’t fit the standard mold for traditional mortgages, making Non-QM financing ideal for helping savvy investors build their real estate portfolios. Especially in today’s fast-moving and red-hot real estate market. Here’s how.

The Benefits of Investor Cash Flow

There may be no better, or more versatile, way to finance investment properties than the Investor Cash Flow program from Luxury Mortgage. Qualification is simple; there’s no employment or debt-to-income verification required, with qualification based on a property’s debt-service coverage ratio. In other words, the ability of the property’s revenue to cover the loan. Cash flow loans can go up to $3.5MM for a variety of property types, including condos, one-to-four unit properties, mixed use, planned unit developments, and more. Plus, you can finance multiple properties with Investor Cash Flow. 

How hot is the market for real estate investors? 

Searing. According to Redfin, 18.4% of all home purchases in the United States went to investors in the fourth quarter of 2021, a rise from 12.6% a year prior. That’s getting close to one in five home sales for investments! What are these investors buying? Affordable properties are the most popular, with low-priced homes making up 37% of investor purchases. With a 32% share of investment purchases, mixed-priced homes run a close second. 

What kind of investments should you consider? 

When looking to real estate investments, you’ll likely choose between either rentals or flipping: 

• Long-term rentals. This is one of the most common ways people invest in real estate: purchasing a single family home or a multi-unit property to rent with yearly leases, providing you with a steady monthly revenue stream. 
• Short-term rentals. Airbnb and similar platforms have shifted the rental landscape, and many investors now buy properties with short-term renters in mind, perhaps using that property as their vacation home when it’s not rented.
• Flipping. This one may look simple on the many flipping TV shows, but buying a fixer-upper to renovate and sell for a profit is a lot of work. If you know what you are doing, however, you may be able to use Non-QM loans to finance a profitable flipping strategy.

Are you ready to start generating income and building wealth through real estate? Luxury Mortgage is here with a range of Non-QM financing options that are sure to meet your investing needs. Contact us today.