LANCASTER, Pa. – Dec. 2, 2019 – PRLog — Stephen Rotay, president and owner of Rotay Capital Finance, is offering portfolio loans, also known as a blanket loans which are utilized to fund the purchase of multiple pieces of property. According to Rotay, portfolio loans are often sought after by real estate investors who purchase distressed single-family residences, condos, or townhomes for the purpose of generating rental income.
Scott Charney, the company’s funding specialist and military veteran with the U.S. Army, has expertise in alternative financing commonly used for portfolio loans for a variety of reasons. “For example, foreign nationals who are new to the U.S. usually don’t have income history or credit established in this country, so they don’t qualify for traditional loans. Our portfolio programs allow the collateral of the loan to be a portfolio of properties to maximize the utilization of equity,” said Charney. “Other, more traditional programs base funding on the borrowers’ personal credit. This can be a problem for some. Even successful real estate investors face challenges when attempting to grow their investment portfolios beyond what a conventional loan will cover,” he said.
Additionally, Rotay’s network of lenders can provide peer-to-peer mortgage loans based on the performance of the deal instead of traditional credit. “Since loans are secured on the real property itself, high credit scores are not required to get matched with the right lenders,” he said. “Investors can borrow up to 90 percent loan-to-purchase price of distressed properties with pledged assets. They can also borrow 100 percent of the rehab cost while only making interest payments during the rehab process.
Some of the common property types suitable for real estate investment loans with three or more include single family residences (SFRs), two to four units as in a duplex or a four-plex, townhomes, condominiums, among others.
General guidelines for real estate investment loans include the property is a suitable type and quantity to qualify for a portfolio loan and in the U.S. as a purchase or a refinance, the loan amount is between $100,000 and $100 million, and the loan term is between one to 10 years. Rotay Capital Finance may be a preferred solution for real estate investment loans due to the borrower makes interest only payments, loans are approved based on stated income and bank statements only, and there are no minimum FICO requirements, to name a few. The finance company can also provide non-recourse, secured loans, and pre-payment flexibility.