Andrew Michael, long time investor and Sales Executive of WCP said “There’s a huge demand for this type of loan product – especially with property values at an all-time high.”
Falls Church, Virginia (PRWEB) August 17, 2017
Today, Washington Capital Partners (WCP), a hard money lender operating in the Washington D.C., Virginia, and Maryland areas, announced their new Flip-to-Rent Hybrid Loan product. This 3-year hard money loan allows fix and flip investors to immediately roll their property into a long-term rental loan.
Daniel Huertas, CEO of WCP said, “The industry is so antiquated that there’s a significant need for someone to create newer and smarter ways to invest. We created this loan product so that our investors have a better way to grow their rental portfolios and ultimately build up their cashflow.”
Typically, investors pay off their hard money loan by selling their property. If an investor wants to keep their flipped property as a rental, they would need to refinance out of their hard money loan (through a bank) to a long-term loan. The catch is that most banks require a 6-month seasoning period where tenants are paying rent therefore proving the property’s rental value before refinancing. And hard money lenders rarely allow tenants to occupy a property during the loan term. What does this mean? Investors were only left with one option, to sell their property, instead of growing their rental portfolio.
Now, investors have an additional exit strategy to turn their flipped property into a rental through one single loan, with no seasoning period, and a lowered interest rate.
Here’s how our Flip-to-Rent Hybrid Loan Product works:
1. The investor secures a hard money loan for the acquisition and repair of an investment property.
2. Upon completion of construction, the investor finds a tenant for the property.
3. Once WCP receives the lease agreement, the loan is immediately modified to reflect a lower rate and an additional 2-year term, avoiding a second loan and a second set of closing costs.
4. The investor enjoys a lower rate and immediate cash flow from their investment property.
5. The investor now has multiple exit strategies: Sell, refinance the property with a bank, or the investor pays off the loan and owns the rental outright.
Washington Capital Partners (WCP) is a private hard money lender that funds a variety of real estate investment projects in the DMV area. Since its start in 2008, WCP has a total volume over $155 million in loan originations. With a tight-knit team of 19 individuals, WCP focuses on bringing technology and innovation into the hard money industry.