Category: Real Estate

Investor Cash Flow – Helping Real Estate Investors Grow Their Portfolios

Investing in real estate can be an exciting opportunity. It gives motivated buyers the chance to diversify their investment portfolio, build wealth and potentially help them earn a bit of extra cash every month–but becoming a landlord isn’t without its challenges. Fortunately, finding the right type of financing doesn’t have to be one of them.

At Luxury Mortgage Corp, we’re pleased to offer home financing opportunities for real estate investors, including the innovative Investor Cash Flow program. This unique loan product is designed with today’s real estate investor in mind, providing competitive pricing on a mortgage that can help secure the purchase of a residential rental property.

Investor Cash Flow Mortgage – The Basics

Simple, Accessing Financing

The Investor Cash Flow mortgage program is a powerful financing tool that allows the cash flow on the property to be used to qualify for the loan. No tax returns or income verification is required, making it an accessible option, even for new investors.

No Limit to Number Financed

With this program, there is no limit to the number of properties financed, which could make it an ideal solution for established investors with a substantial portfolio.

Cash Flow Qualifier

Unlike other investment property loans, the Investor Cash Flow program allows the borrower to qualify based on the anticipated cash flow from the property once it is rented. There are a few additional guidelines that must be met and the debt service coverage ratio (DSCR) must be used to calculate the funds that may be used to qualify.

The DSCR is defined as the gross rent divided by the qualifying principal, interest, taxes, insurance and association dues (PITIA). The DSCR must be greater than or equal to 1. For example, if the gross rent is $1,000 and the qualifying PITIA is $700, you would calculate the DSCR by dividing $1,000 by $700, which would be roughly 1.43.

If there is already a lease in place on the subject property, the current rent will be used in the DSCR calculation. If there is no lease in place yet, the rent will be the market rental price, determined by an appraisal.

Want to learn more about the Investor Cash Flow program? Click the button below!

Benefits of the Program

Here are just a few great reasons to consider the Investor Cash Flow mortgage:

  • Eligible borrowers can finance up to 80% of the property value
  • Credit scores as low as 580 are acceptable
  • No employment or income documentation required
  • Loan amounts available up to $3,000,000
  • Competitive pricing
  • No limit to the number of financed properties

Expand Your Portfolio Beyond Fannie & Freddie’s Limits

With Fannie Mae, investors with 7-10 financed properties must meet strict credit score requirements as well as additional reserves requirements. Freddie Mac has similar restrictions and requirements for investors. With Luxury Mortgage’s Investor Cash Flow program, eligible borrowers have more freedom to obtain financing, even with an established portfolio of rental properties and/or second homes.

Ready to Learn More?

If the Investor Cash Flow mortgage sounds like a good solution for your investment property loan needs, don’t hesitate to connect with us! Give us a call toll-free at 888-379-0303 or contact us through our website.


Summer is a Great Time to Buy a Home

Everybody says spring is “the” home buying season. But summer’s a great time to buy — maybe even a better time to buy, and here’s why:

Less Competition

Spring is the typical busy season for real estate. That means there’s going to be tons of hopeful house hunters hitting the streets, looking for their dream home, investment property or vacation house. Summer on the other hand offers buyers the best of both worlds–there are still plenty of homes listed on the market, but fewer people are searching as back-to-school season approaches.

Potential for Better Negotiation

Home buyers who’ve had their listing up since early spring may be more willing to accept a lower offer once July or August rolls around. Sellers who are eager to sell because of a change in lifestyle (starting a new job, relocating out of state, having a baby, etc.) may be especially open to negotiation. However, buyers should take caution when it comes to lowballing. Continue reading Summer is a Great Time to Buy a Home


Using Rental Property to Build Wealth

Is investing in rental property a good way to build wealth? In today’s post, we’ll review some of the pros and cons of rental property investment and highlight some options for financing.

Individual Investors are Eyeing Rental Homes

According to data released in 2017, close to half of all rentals (47%) were owned by individual investors. With a significant portion of the population feeling hesitant about investing in the stock market, and home values continuing to climb across the nation, investing in real estate seems to make perfect sense. Continue reading Using Rental Property to Build Wealth


Home Loan Solutions for Real Estate Investors

Investing in real estate (specifically rental property) can be a great way to diversify your portfolio and build wealth over time. But finding the right form of financing to help you achieve your goals can sometimes be a challenge. In today’s post, we’ll review a few popular investment property loan options and show you where to go to learn more.

When considering the purchase of a home that you intend to use as rental property, it’s important to weigh the pros and cons of things like being a landlord, hiring a property management company and choosing whether you want to invest for the long run or you want to “fix and flip” for a more immediate profit. Once you’ve given substantial thought to the matter, the next big step is getting pre-approved for financing. Doing so can help you understand exactly how much money you’re able to borrow as well as put you in a more favorable position with sellers, since they are more likely to accept an offer from someone who has already taken the steps to secure a loan. Continue reading Home Loan Solutions for Real Estate Investors


The Top 5 Fastest Growing Cities in the U.S.

Austin TX sign on building

The metro areas on Forbes’ 2016 Fastest Growing Cities in the U.S. are diverse in landscape, climate, cultural experiences, and inhabitants. With a powerful collision of fast-growing populations and economies ablaze, these cities offer plentiful job opportunities for creative and technical talent, varied housing and lifestyle options, low unemployment rates, and better-than-average median annual pay for college-educated workers. Here are the top 5 from Forbes’ 20 fastest growing cities in the U.S.  Continue reading The Top 5 Fastest Growing Cities in the U.S.