Investment Property Loans Provide the Fast Cash You Need
Real estate investing can be a wildly profitable venture when you have the right game plan and secure financing to support you. Investment properties are a popular investment for clients who are looking for long-term returns by renting out residential properties and commercial property. Investment properties can range from a single family home to multi-unit complexes, office space, parking garages, and more. Here in Palm Desert and surrounding California, investment properties are a very popular option, even for beginning real-estate investors. The Pacific Mortgage Exchange, Inc., mortgage professionals are here to show you the different types of investment property loans available for real estate in Palm Desert, Palm Springs, San Bernardino, Riverside and Coachella Valley. Contact us to learn more.
The Many Uses of Investment Property Loans
Most investment property loans are hard-money or private loans. This means that rather than basing lending approval on an individual’s credit score and financial standing, we use the real estate itself as collateral. Hard-money loans typically require a substantial down payment, usually 25% or more. Hard-money loans provide the immediate capital required to take on a commercial investment.
There are a few distinctions to be made among types of investment properties. We provide funding for commercial properties for business and for vacation homes and rental properties where people reside or stay for a short time.
Vacation Homes and Rental Properties
The IRS will determine how much of your investment is taxed as a second home and how much is taxed on a vacation home based on how much time you spend in the home. If you never stay in the property, it’s considered a rental property. Most rental property owners have long-term tenants that reside in their buildings. These properties may be single- or multi-family buildings. Common multi-unit buildings include apartment complexes, condominiums, assisted living facilities, student housing, and more.
Vacation and second homes are a popular option for people in California with the numerous vacation destinations in nearby Palm Springs and Coachella Valley. Many of our clients stay part-time in their vacation homes (which are designated as such as long as the owner occupies the property for at least 14 days a year). When they aren’t staying at their second home, they use websites like Airbnb or independently rent their homes for people who choose not to stay in a hotel or motel. You can choose to rent your vacation home for just days at a time or for extended stays.
Commercial Investment Properties
There is a wide selection of investment properties to consider for commercial purposes. These properties can provide great returns over time. Common types of property include:
- Office or warehouse buildings
- Industrial property
- Retail centers and strip malls
- Self-storage facilities
- Parking garages
If you’re considering purchasing an investment property for commercial use, you may need to present a business plan, earnings potential and any other documentation that can help in the valuation of your loan.
Explore the Possibilities of Investment Property Loans Today
Pacific Mortgage Exchange, Inc., works with individual investors and with partnerships and investment groups. We are located in Palm Desert, CA, and finance commercial investment properties in Palm Springs, San Bernardino, Riverside and Coachella Valley. For more information on commercial property loans, contact us to schedule a consultation.