Fix and hold property loans help buy and hold real estate investors obtain a property, or more than one rental property to build their rental property portfolio. A good buy-and-hold real estate investor will take care in selection, rehab, and maintenance of the rental properties they rent to tenants. Additionally, a good buy-and-hold rental property owner invests in the improvement of living for their target market, regardless of the target market’s income bracket. Investing in people should be part of their vision.

Four-Step Pathway to Fix and Hold Real Estate Investing: Fix and Hold Properties

Implementing the proper fix and hold business plan helps direct a path to successful investing. Since you are searching for a fix and hold property loans, you are likely following the following five basic steps in rental property investing:

Step One: Locate the RIGHT Fix and Hold Property

When purchasing a property for real estate investments, you want to get the best possible deal. Plenty of foreseen, and sometimes unforeseen, costs surface. So the lower amount you pay for the rental property, the better. That means you have more money in your budget to make a high profit. Benefit from that higher profit from having not reached budget limits, allowing for the use of monies for re-investment in another property.

Alternatively, using the “extra” monies for re-investment for improvements to the property, therefore, allowing the opportunity to charge higher property rental rates increasing a higher monthly cash flow. Monthly cash flow is completely dependent on rental housing expenses, which then fall back on the rental property’s purchase price.

Most importantly, it is indeed about getting the right property. Location can mean everything. If the location is not a favorable location for an investor’s target market, the investor may experience difficulties filling occupancies. Picking the right location is super important, however, so is the rental property’s living space.

Real estate fix and hold investors purchasing rental properties should take into account details such as the living space layout and amenities.

These are factors about rental properties that will later affect potential rehab costs and or monthly rental rates per unit, therefore affecting monthly cash flow.

Every step of the process is indeed important!

Step Two: Financing & the Right Fix and Hold Loan

We help investors, novice or seasoned, get funding for their rental property investment properties. Work with us for your rental property loan needs.

Simply call, fill out our contact form, or fill out the pre-qualification form. We will contact you within 24 hours to discuss rental property loan options.

Step Three: Perform Rental Property Improvements

It is a good idea that real estate investors do not over-extend themselves when performing property improvements. If the investor got a really good deal on the property, they will likely have more ability to perform rental property improvements.

Smart Thinking

It is just a good idea to balance the investment for improvements so that you find a profitable medium allowing for higher rental income, cash flow, while still providing an adequate value for the tenant.

Real estate investors should care about the quality of their rental property portfolio. The rental property portfolio is a reflection of the investor themselves or the stakeholders who represent the properties. The investor still needs to add value!

A seasoned investor has the ability to forecast renovation costs so it is factored into the offer and purchase price. The most subtle renovations can in some cases increase your rental amount between 25-30%.

Step Four: Adequately Manage & Maintain Rental Properties

Providing Value Through Rental Properties

Remember the part about how good investors provide value to tenants? Well, part of providing value through investor rental properties is maintaining that value.

This includes activities required to maintain a legally habitable rental property and activities to provide added value that makes your rental property stand out when compared to other investor portfolios state and nationwide.