The real estate investment landscape presents various opportunities for wealth creation, but not one can navigate it successfully without access to adequate financing. For investors, access to the proper tools financially will mean the difference between scaling up or remaining stagnant in your pursuit of portfolio expansion. From financing the acquisition of new properties to refinancing existing ones, adaptable, tailored financing solutions are necessary.
At Metro View Capital, we are specialists in offering flexible financing options for real estate investors. Our offerings include CIM Real Estate Finance Trust, portfolio loans for rental properties, and flexible bridge loans. These offerings are designed to provide investors with the tools they need to grow and manage their portfolios. For those who want to streamline their real estate investments while maximizing profitability, these financial solutions are indispensable.
In this blog post, we’ll talk about how CIM Real Estate Finance Trust can help property investors consolidate all of their real estate holdings under one loan; the ideal form of portfolio loans for rental properties, to effectively manage multiple properties; and flexible bridge loans to assist with closing a time-sensitive deal. Let’s look into how each of these options work together to help you unlock the full potential of your real estate investment strategy.
Understanding CIM Real Estate Finance Trust
CIM Real Estate Finance Trust is a private real estate investment trust that offers customized financing solutions to real estate investors. CIM offers a range of lending products designed to meet the specific needs of property investors, whether you are looking for capital to acquire new properties, refinance existing investments, or expand your portfolio.
The other most critical factor about CIM is its flexibility in providing the right financing terms for investors to leverage various opportunities in real estate. Whether one deals with residential, commercial, or mixed-use properties, CIM financing solutions are flexible and adapted to accommodate many types of investment strategies.
Role of CIM in Long-Term Financing
The long-term financing provided by CIM to real estate investors is much-needed stability. If you have utilized short-term solutions such as flexible bridge loans in order to quickly acquire properties, CIM’s long-term financing can be used to consolidate your investments under one umbrella, making them easier to manage and with better terms.
With CIM, you can receive competitive rates and longer repayment terms, along with a simplified way to refinance your properties, which will leave your investments on solid financial grounds as you increase your portfolio further. Moreover, CIM’s finance options can accommodate the scale of your property ownership, from the smallest rental portfolio to the extensive multi-property ownership.
What Is a Portfolio Loan for Rental Property?
The challenge with investors and multiple rental properties is that these investors have a challenge of taking care of multiple loans, as these loans have different interest rates, terms, and monthly payments. It becomes very confusing and complex, especially if these are spread out in different areas or properties, for example, single-family homes, multi-family units, or even commercial properties.
This is where portfolio loans for rental properties come in. A portfolio loan is a type of financing that allows real estate investors to consolidate their real estate holdings under one loan, simplifying the management of multiple properties.
Benefits of Portfolio Loans for Rental Properties
Simplified Loan Management: Probably, one of the most important advantages of portfolio loans for rental property is that they are easier to manage. Instead of competing with several loan due dates and interest rates in a property investor’s portfolio, investors need to manage only one loan, thus reducing the administrative workload greatly.
Increased Borrowing Power: Since portfolio loans are all-inclusive and encompass a collection of properties, investors can borrow at better terms and at a higher amount. The lenders calculate the value of the entire portfolio instead of considering the individual property values. In that regard, they might grant higher loan amounts based on the overall value of the assets within the portfolio.
Streamlined Refinancing: For investors looking to refinance their properties, portfolio loans for rental properties are a more streamlined process. Investors do not have to refinance each property separately but can instead consolidate their entire portfolio into one loan with better terms, saving time and effort.
Flexible Terms: Portfolio loans for rental properties often come with flexible terms that can be customized to meet the investor’s needs. Whether it’s adjusting the loan’s duration, payment schedule, or interest rate, these loans are designed to be adaptable to a range of investment strategies.
By consolidating properties under one loan, investors can focus more on growing their portfolios and less on managing multiple loans. This makes portfolio loans for rental properties an excellent option for investors looking for efficiency and ease of management.
How Flexible Bridge Loans Can Support Real Estate Investors
While portfolio loans for rental properties are ideal for long-term financing, there are times when investors need quick access to capital. This is where flexible bridge loans come in. Flexible bridge loans are short-term loans designed to provide quick capital for investors looking to close time-sensitive deals.
Real estate investors often face situations where they need immediate financing, such as purchasing distressed properties, securing a deal at auction, or quickly taking advantage of an investment opportunity. In such cases, waiting for traditional financing to come through can be too slow. Flexible bridge loans offer the necessary funds to close the deal quickly and give the investor time to transition to more permanent financing solutions.
When Should Investors Use Flexible Bridge Loans?
Auction and Foreclosure Purchases: Real estate auctions and foreclosure sales often require fast action. Investors who want to secure a property at auction need to have the funds ready immediately, and flexible bridge loans can provide that quick access to capital.
Fix-and-Flip Projects: Investors looking to purchase, renovate, and resell properties for a profit often require quick financing. Flexible bridge loans enable investors to acquire properties quickly and fund the necessary renovations, with the plan to refinance the loan once the property is renovated and sold.
Gap Financing: Sometimes investors need to close a deal but are waiting on other sources of financing. Flexible bridge loans can provide the short-term funds needed to close the deal, with the expectation that the investor will secure more permanent financing later.
Time-Sensitive Deals: Whether it’s a limited-time offer or an urgent opportunity, flexible bridge loans allow investors to act quickly and secure properties before the opportunity slips away.
While flexible bridge loans are typically short-term in nature, they offer investors the flexibility and speed they need to seize opportunities, ensuring they don’t miss out on profitable deals.
How CIM Real Estate Finance Trust Can Complement Bridge Loans
Once you’ve secured a property using flexible bridge loans, you may need to transition to long-term financing. This is where CIM Real Estate Finance Trust comes into play. CIM Real Estate Finance Trust specializes in long-term financing solutions, providing investors with the capital they need to stabilize their investments and keep growing their portfolios.
For investors who have used flexible bridge loans to acquire properties quickly, CIM offers a streamlined path to permanent financing. Whether you need to refinance the property, consolidate your loans, or fund new projects, CIM Real Estate Finance Trust offers flexible and competitive financing solutions.
By transitioning from flexible bridge loans to long-term solutions like those offered by CIM, investors can stabilize their portfolios and ensure that their properties continue to generate steady returns. This seamless process allows investors to avoid the risks associated with carrying multiple loans and provides a clear path to long-term financial stability.
Portfolio Loans and Long-Term Growth
If you have multiple properties in your portfolio, you might find that portfolio loans for rental properties are the best solution for managing your investments. These loans allow you to group your properties under one loan, making it easier to handle payments, track expenses, and plan for future investments.
Portfolio loans for rental properties can be combined with CIM Real Estate Finance Trust to provide the financial stability needed for long-term growth. By consolidating your properties into a single loan, you’ll have more flexibility in terms of cash flow management and will be better positioned to take on additional properties.
Conclusion
Real estate can be a great investment when planned and executed well, and proper financing will be employed. Whether just starting or scaling up your portfolio, CIM Real Estate Finance Trust, flexible bridge loans, and portfolio loans for rental properties give you the flexibility and support in making the most of each opportunity.
At Metro View Capital, we offer financing solutions tailored to meet the unique needs of real estate investors. With our help, you can secure fast financing for your short-term projects, refinance your properties for long-term growth, and consolidate your portfolio into one easy-to-manage loan.
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