Buy-and-hold investing is one of the most common forms of investing. Purchasing something today with the intention of selling it in the future after the price has increased, or holding it while income flows in, is a savvy strategy to ensure impressive profits. When it comes to real estate buy-and-hold programs, finding the right hard money lender is as important as finding the right property. Whether it’s an investment-based single-family property for long- or short-term rentals, a soon-to-be-leased warehouse, or retail or office space, these flexible money lending programs provide just what you need. Buy-and-hold hard money loans for real estate investments are designed to accommodate the unique needs of commercial property investment projects.
What Is a Buy-and-Hold Loan Program?
For investors who want to hold property for an extended period of time, for example, for three years or more, buy-and-hold real estate hard money lenders can provide a lower interest rate that can be locked in with a 30-year amortization. This allows investors to pay down the mortgage on their properties, gaining equity over time.
The Pros of Buy-and-Hold Loan Programs:
Buy-and-hold loan program rates are competitive, and some lenders cater to investors who require expedited closings on their properties.
The Cons of Buy-and-Hold Investing:
While buy-and-hold program investing can be lucrative, there is a level of unpredictability to this type of investing, as with any type of investing. Savvy investors don’t just act on a hunch; they do their research and due diligence to obtain relevant information on market trends and make calculated decisions when purchasing property with the intent to make a substantial profit. However, markets have a tendency to fluctuate, but with a good grasp on economics and real estate investing, buy-and-hold investing can be a promising endeavor. Buy-and-hold hard money loans for real estate are long-term loans, so they can weather the volatility of market fluctuations.
Timing Is Key
Holding onto a real estate purchase for a period of time provides the advantage of selling the property when the market value rises enough to make a profit. Just as with the stock market, the key is to buy low and sell high. Having the luxury of being able to wait for the market to make an upward turn is valuable, as it can take time—sometimes several years or even a decade or more. The best buy-and-hold investments generate income while you’re waiting for the property value to rise enough to make the profit you want. Many commercial real estate investors purchase properties that can be leased out, which generates income. Purchasing the right property at the right time with the right money lending terms is the key to success.
Hard Money Loans
Real estate hard money loans provide greater flexibility for use in any buy-and-hold program. Real estate investors and developers sometimes don’t have the standard proof of income that a standard bank or mortgage company requires for loan approval. Jumping through all the hoops to make an acceptable application, then waiting weeks or months for approval, can mean missing out on a hot property deal—where timing is everything—and settling for less favorable terms. A hard money lender will understand the world of real estate finance and can help you close on properties quickly with the terms you require.
Buy & Hold Programs From GenWealth Capital Commercial
Instead of complicated investor-based qualifications, GenWealth Capital Commercial is a real estate hard money lender that offers loans and terms that are based on the investment property, not your credit history or proof of current employment. The financial experts at GenWealth CapCo can offer terms up to 80% loan-to-value on a credit score as low as 600 with loan amounts up to $5 million, making this buy-and-hold lending program ideal for both new investors and veteran multi-project investors. You have the option to choose standard 30-year amortization, or interest-only financing as the investment parameters dictate.
Here are a some details about the buy-and-hold loan program for GenWealth CapCo:
- Eligible properties include industrial/warehouse, retail, office, multifamily, mixed use, and investment single family for long-term and short-term rentals
- Loan amounts from $150,000 to $5,000,000
- Rates start at 6.75%
- Minimum credit score required is 600
- Lending area is nationwide
- Transactions: purchase, refinance, cash out
- Maximum loan-to-value ratio is 80%
- Terms: up to 30-year amortization with interest-only options available
- Portfolio loans are available to combine multiple properties
- No real estate investment experience is needed
The longer terms of buy-and-hold loan programs allow lenders to collect on their investment longer, which makes buy-and-hold interest rates lower than other money lending. Of course, instead of sitting back and waiting for the world to eventually deliver your profits, buy-and-hold programs are a great way to collect the ongoing income of a leased property while slowly making improvements to the property along the way, turning an average property into a higher-end property that can command higher rents.
Contact GenWealth CapCo to Learn More About Buy-and-Hold Programs
See how the buy-and-hold program experts at GenWealth Capital Commercial can leverage our hard money lending network for you and your project. We’ll work to get you the terms you need for financing that fits your goals. Contact us today to learn more about our buy-and-hold loan program, or apply online now if you’re ready to get started!