How Real Estate Investors Use No Doc Loans to Buy and Cash Out of Existing Rentals
Obtaining a “no doc real estate investment loan” is not as difficult as your average loan officer would have you think. Whether you’re looking to continue growing your real estate portfolio or you want to get started investing in real estate rentals, a no doc loan might be exactly what you need.
It’s normal to assume that buying a house in this post 2008 world is more difficult. With all the talk about oversight and The Dodd Frank Act designed to regulate the financial industry by curbing risky practices to prevent another Great Recession, conventional mortgage lending is a bit stricter today.
Why would lenders offer no doc loans?
It should come as no surprise that investors and entrepreneurs write off everything they legally can— which on tax returns yields a reduced net income. Think about the plastic surgeon who earns three million per year but only shows a net income of 99 thousand dollars. While globe trotting he’ll attend seminars on the latest and greatest lasers, he’s buying the latest laser diode machines, and he’s expanding his practice which in paper reduces his net income quite drastically. Or, think about Trump (regardless if you love or hate him), he’s the perfect example of how investors legally write off everything to drastically reduce their tax bills while they continue investing in real estate.
Capital improvements like new carpets and repairs along with depreciation help to reduce the proverbial bottom line. We understand that real estate investors can —and should rack up as many legal deductions as possible. Leveraging the tax code to your advantage is a smart wealth-building strategy for which we not only congratulate you but we also take pride in assisting you to secure your real estate with no doc investment loans.
How do you get a no doc real estate investment loan today?
Which brings us to the present-day investment lending options; investors who put some “skin in the game” in the form of a down payment of at least 10 percent are able to bypass the typically strenuous and intrusive underwriting process. You’ll just need a good property you intend to rent and a few months of monthly payments in reserves to cover the time gap until you get your new tenant moved in. We’ll study the property, the rental forecasts, and your monthly payment on the property. Once the numbers make sense we can schedule your closing and get you that money as quickly as possible.
How do credit reports factor in a no doc loan?
The higher your credit score the better, this is obviously the case with anything, whether we’re talking about utility deposits, insurance premiums, or employment opportunities just to name a few. However, we understand that sometimes LIFE happens, so we’ll look at your credit report to make sure that there are no major red flags in the last two years and we’ll work with you and your credit. We do understand that your credit report doesn’t provide a full picture of your current scenario. Keep in mind that there may be different interest rates for different scores but we thrive at helping our investors get the very BEST no doc investment loans possible.
What’s the difference between traditional loans and no doc loans?
Simply put, no doc real estate investment loans completely streamline the application process. The focus is on the property’s value, the rental income it can fetch, and your overall credit. Unlike traditional lending in which YOU are the focus with an underwriting process that can easily take a month or longer, we offer you tailor-made no doc loans that make sense. We work very quickly so that you can swoop in on the hottest real estate deals super rapido! No documentation real estate investment loans are like an adrenaline shot for fast action takers.
How to do a cash out refinance no doc loan
Many investors who need a quick cash injection whether it be for things like renovations, improvements, appliances, or other investments will benefit from a no doc cash out refinance loan. This allows you to easily tap into your equity without providing tax returns or undergoing a lengthy underwriting process. All that’s needed is information about your property, current loan, your desired loan amount, and a look at your credit report. The difference between your new loan amount and your current loan balance is paid to you.
Give us a call at 361-334-7903 and let’s help you explore your best loan options. We invite you to leverage our lending experience so that you can confidently create a legacy of real estate wealth for your most cherished loved ones.
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