Investment Property Loans & Financing

Experienced, Direct Hard Money Lenders for Rental Properties

Wave Private Money is an experienced investment property broker providing nationwide investment and rental property loans. We provide investment property financing to real estate investors needing fast and reliable funding. Based in San Diego, California, WPM offers real estate investment loans throughout the United States and has over 20 years of experience financing investment property.

Providing fast approvals and funding, competitive rates, and excellent customer service, Wave Private Money has proven to be one of the Nation's most experienced and reliable sources of hard money investment property loans. We have the expertise, experience, and capital to fund investment and rental property loans for real estate investors quickly.

Investment Property Financing

Investment property financing from hard money lenders is faster and easier to obtain as they primarily work with real estate investors and better understand their needs. Real estate investors prefer financing investment property with hard money lenders as they require less paperwork and provide fast loan approvals and funding, especially compared to conventional lenders such as banks or credit unions. Hard money investment property lenders have few requirements as they are asset-based lenders primarily concerned with the value of the property and the borrower’s equity in that property.

Investment Property Loan Interest Rates

Investment property loan rates will vary based on the specifics of the loan scenario, such as length of the loan, loan to value (LTV), condition and location of the property, and overall perceived risk of the investment. Hard money investment property loan interest rates are typically higher than those from a conventional lender (if the traditional lender can provide this type of loan). Many conventional lenders solely focus on owner-occupied home mortgages and do not provide financing for investment property loans. Wave Private Money is a broker with a broad network of lenders that we partner with to find the best hard money investment property loan rates.

Investment Property Loan Requirements 

Hard money lenders generally have fewer investment property loan requirements than institutional lenders such as banks and credit unions. The following are some of the most common investment property loan requirements:

Down payment / Equity – The main requirement for an investment property loan is the borrower having a significant down payment (at least 25-30%) or sufficient equity in the property if the loan will be a refinance.
Financial Strength of the Borrower – The borrower must demonstrate they have the necessary funds for various costs such as monthly loan payments, taxes, insurance, and other holding costs for the investment property.
Rental Income – The investment property lender will want to ensure that the property’s rental income will cover or come close to covering the monthly financial obligations of the investment property.
Exit Strategy – Hard money investment property loans are typically short-term and available for 3-4 years. The investment property lender will want to know the real estate investor’s plan for the property and whether they intend to sell, refinance, or pay off the investment property with funds from other sources.

Quick Close with a Hard Money Investment Property Loan

Reputable hard money lenders can fund an investment property loan request in as few as 3-5 days if the borrower needs the funds immediately to close escrow. In many cases, a real estate investor will use hard money financing to acquire an investment property quickly and then begin looking for a longer-term, lower-cost financing option. This acquisition strategy is especially beneficial in a real estate market when many buyers compete for few properties.

Sellers are often more likely to accept an offer from a buyer with hard money financing than a conventional one. Experienced sellers understand that hard money lenders can fund much faster and have fewer issues during escrow than traditional lenders. A buyer with hard money financing can even offer a shorter escrow period to entice an anxious seller to accept their offer. Sometimes, a seller may get a lower offer because it comes with a shorter escrow period and hard money financing.  

Rental Property Loans – Rental Property Financing

Buying a rental property is one of the most popular forms of real estate investment. Real Estate investors purchase a property that can be rented to a tenant for more than the monthly liabilities (principal, interest, taxes, insurance). Ideally, the real estate investor will achieve positive cash flow initially, but this isn’t always feasible. The real estate investor will also depend on the property appreciating and take advantage of tax benefits to maximize their profits from purchasing the rental property.

Hard Money Lenders for Rental Properties

Hard money loans for rental property are often used when the borrower needs to act quickly to secure the property. Obtaining a rental property loan from a conventional lender can take months and involve mountains of paperwork. Rental property loans from hard money lenders can be approved same-day, and funding can be completed within days if needed. Once the rental property hard money loan has been used to secure the property, the owner can look into longer-term loan options if required.

Some borrowers will use hard money lenders for rental properties after being denied by conventional lenders such as banks and credit unions. Traditional lenders may deny a borrower’s loan request for various reasons, including having too many existing conventional loans, poor credit, or other negative issues on their recent record (bankruptcy, foreclosure, short sale, etc.). When analyzing a rental property loan, hard money lenders focus primarily on the value of the property and the borrower’s equity (down payment) in the property. The focus on value and equity allows the hard money lender to overlook many issues that would be red flags for banks.

Rental Property Financing Requirements for Hard Money Lenders

Rental property financing from a hard money lender generally requires a down payment of at least 25% from the real estate investor. 100% financing is not available. Hard money loans for rental property are typically easy to obtain as long as the real estate investor has the necessary down payment and sufficient cash or income to cover the property’s holding costs. Rental property hard money lenders can overlook poor credit scores and items on a borrower’s record, such as foreclosures, bankruptcies, short sales, loan modifications, and other issues that would prevent other lenders from providing investment loans for rental property.

Suppose the real estate investor has sufficient equity in another property but needs more cash for a down payment. In that case, the real estate investor may be able to take out a cash-out refinance loan to raise the funds for the down payment on the purchase of the new rental property. The lender will also want to see that the investor has enough cash reserves to deal with potential tenant vacancies, repairs, and other unforeseen issues.

Rental property loans from hard money lenders are not typically long-term loans. The most extended terms available are usually 3-4 years terms. Hard money loans for rental properties are often amortized over 30 years, but a balloon payment will be due after the agreed-upon term. The lender will want to know the real estate investor’s intended exit strategy upfront to understand how the borrower will repay the rental property loan. The exit strategy may involve refinancing the rental property loan into a long-term conventional loan or selling the property.

Real Estate Investment Loans

Wave Private Money provides various real estate investment loans to real estate investors in the United States. The most popular real estate investment loans besides investment property purchase loans include investment property refinance and rehab loans.

Real estate investor loans help borrowers quickly secure investment property or borrow against real estate they already own. Private money real estate investment brokers such as WPM can provide same-day approvals and financing within days. The speed of loan approval and funding allows borrowers to capitalize on short-term opportunities and use leverage to maximize their investment yield. While banks can take 2-3 months to approve and fund a real estate investment property, private money real estate investment lenders can support and finance it within a week.

Real Estate Investor Financing

The main requirement for obtaining real estate investor financing is having sufficient funds for a down payment or equity in an existing property. Real estate investment financing generally requires a down payment of at least 25-30%. For refinancing existing real estate investments, the borrower must maintain equity of at least 30% (allowing a cash out of up to 70% of the property's value).

Residential Real Estate Investment Loans

Residential real estate investment loans are available for various property types, including single-family residences, condominiums, apartment buildings, and other multifamily properties (duplex, triplex, fourplex, etc.). Loan-to-value ratios of up to 70-75% are available for residential real estate investment loans with financing terms of up to 3 years.

Real Estate Investment Loan Rates

Real estate investment loan rates from private money lenders are typically higher than interest rates available from conventional lenders such as banks and credit unions. Interest rates for real estate investor loans from hard money lenders are generally 8-9.5% for 1sts. Rates for 2nds are much higher, usually with rates starting at 11%.

Investment Property Refinance Loans

Wave Private Money can help real estate investors refinance investment property in the United States. Investment property refinance loans are common for real estate investors who own investment property with sufficient equity. WPM provides refinance loans for investment property and cash-out refinance investment property loans. A simple refinance loan offers the borrower a lower interest rate or a longer loan term if the existing loan will soon become due. A cash-out refinance loan allows the borrower to quickly pull equity from the current property to reinvest in another. After multiple years of a hot real estate market, real estate investors discover a large amount of equity in their rental properties. Cash-out refinances rental property loans are a popular way to access the equity of a property to invest capital in other projects.

Investment Property Rehab Loans

Investment property rehab loans (also known as fix and flip or rehab loans) are available for real estate investors who wish to purchase a property, quickly make any needed repairs and improvements, and then sell the property for a profit. Rehab loans for investment properties give the real estate investor a short-term loan with the funds required to purchase the property and, in some situations, also provide a portion of the funds for the rehab costs. Rehab loans for investors are often in high demand during a robust real estate market as many investors look to take advantage of appreciating real estate prices.

Fix-and-hold loans are also available to investors who wish to purchase a property needing rehab, make improvements, and then hold the property as a rental. An investment property rehab loan typically has a 12-month loan term, while a fix-and-hold loan would have a loan term closer to 3 years. Please see our Fix and Flip / Rehab Loans page for more information.