Interest-only loans can be a useful tool for real estate investors who are looking to maximize their cash flow and increase their return on investment. With an interest-only loan, the borrower only pays interest on the loan for a set period of time, typically between 6 months to 2 years. This results in lower monthly payments and increased cash flow, which can be used to fund other investment opportunities or pay down other debts. Additionally, interest-only loans may provide investors with the ability to qualify for larger loan amounts, as their debt-to-income ratio is based solely on the interest payments.
However, it's important to note that interest-only loans come with risks. Once the interest-only period ends, the borrower will be required to make full principal and interest payments, or refinance, which could result in significantly higher monthly payments. Additionally, if the real estate market experiences a downturn, the value of the property may decrease, which could lead to negative equity in the property.
Why Choose Infin8 Lending for Your Investment Property Financing Needs?
Infin8 Lending is a private lending company that specializes in providing financing for real estate investors. They offer a variety of loan programs, rental property loans, bridge loans, land cash outs and commercial property loans with loan amounts between $1mm and $25mm. Infin8 Lending offers flexible terms, extremely fast closing times, and competitive interest rates. Infin8 Lending is also able to provide funding for investors without the use of credit scores and various other underwriting that many lenders require.
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