Next-Financing Real Estate
As a Nationwide Lender, we provide Flexible Real Estate Loans (owner occupied & non owner occupied) as a result of our simplified, easy to navigate application/approval process. We currently offer a full suite of real estate loan products, but our most popular or core products are listed below.
Our focus is on the broker and borrower community – in search of alternative financing after the banks have turned them down. We are a one-stop shop with direct involvement from beginning to end. From loan submission to funding, we handle the process in-house. With today’s ever-changing guidelines, we do everything possible to assist our clients and broker partners, offering a national lending platform with defined rate sheets, easy-to-understand underwriting guidelines, and in-house discretionary capital.
Next-Financing / Top Real Estate Products
Fix & Flip Loan: Our fix and flip loans allow you to purchase a property under market value, rehab it, and then re-sell it as quicky as possible. Typically, a 1-year term with no pre-payment penalty, it enables investors like you to maximize returns on quick flips. If you have a larger rehab project that is going to take longer than one year, do not worry we also offer 2 year fix and flip options as well. 12-Month Fix & Flip Financing – Interest only competitive rates starting at 7.99% and approvals up to 90% LTV & 100% rehab costs – Fast Close (7-10 Days).
Rental Loan: Next-Financing Rental Loans provide investors of all experience levels the ability to purchase, refinance or cash-out refinance individual rental properties, as well as portfolios. We offer a variety of Rental Loan products – 5 Year ARM, 7 Year ARM or 30 Year Fixed – Competitive ratesCompetitive rates starting at 5.99% & approvals up to 80% LTV – Fast Close (7-10 Days).
Fix & Rent Loan: By combining the first 2 products listed, Our Fix & Rent Loan was designed specifically for investors who are looking to purchase a property, rehab and hold as a short or long term rental property. For experienced real estate investors, we offer a single-close Fix and Rent Loan. You can get the best of both worlds with a best in class Fix & Flip Loan, which transitions seamlessly into one of our Rental Loan products – 5 Year ARM, 7 Year ARM or 30 Year Fixed.
Refinance / Cash-Out Refinance: Whether you want to lower your payment or get cash out, refinance is for you! Tap into and leverage the equity of your residential investment property to fund and acquire your next investment. You can leverage a cross-collateralization loan by combining equity from multiple properties to help with your next project. We offer a variety of Refinance products – 5 Year ARM, 7 Year ARM or 30 Year Fixed – Competitive rates starting at 5.99% & approvals up to 80% LTV – Fast Close (7-10 Days).
Multi-Family Loan: If you’re looking to purchase or refinance a multi-family real estate property (5 or more units) – in need of some value-add rehab or currently turnkey ready, our Multi-Family Loan product is perfect for you. Our unique positioning and strategic vertical approach provides fast and efficient financing to our value-add Multi-Family clients.
Commercial Loan: Next-Financing provides commercial loans for a wide variety of commercial properties, which include office buildings, mixed-use buildings, retail stores, warehouses, self-storage, auto repair shops and much more. While we do provide investment property financing for up to $5 million on small balance commercial real estate buildings, most of our commercial real estate loans fall under $3 million in value. These smaller loans are much easier to approve and close in comparison to “institutional” loans for larger properties.
Next-Financing / Our Mission
Our mission is to make the overall process of applying and receiving loans for real estate investors quicker and more reliable by focusing on three key factors:
Real Estate – The Deal: Next-Financing helps provide real estate investors with the capital they need for all of their real estate investing needs. We understand how competitive our industry has become, so we analyze each new deal with extreme creativity. We encourage our team to think outside the box to ensure we provide our clients with the very best product for their current situation & need. If the deal makes sense, we’ll fund it.
Technology – The Process: Next-Financing provides a streamlined, user-friendly online application making it faster and simpler for borrowers to receive funding to grow their real estate investment business. Our technology was created by real estate investors for real estate investors. We continue to invest in the latest tools & technology, so we’re always ahead of the next big trend or opportunity – for our success AND our clients.
Customer Service – The Client: Next-Financing combines their extensive real estate experience and exceptional customer service to provide a one on one experience to help clients. We don’t look at your deal as a number or just a transaction. It’s an opportunity to prove ourselves, build a relationship and earn your business for today and the future.
Why Partner With Next-Financing?
It all starts with offering great pricing and industry low fees, while closing in 10 days or less for our core residential products – Fix-Flip loans, Rental Loans and Refi’s. No complicated forms or unnecessary paperwork and you can pre-approval numbers the same day – at worst, within 24 hours. We put the cherry on top of the sundae, by having our loan advisors with you every step of the way.
Let’s put you in the driver’s seat and allow you to decide for yourself. Ask yourself these questions to see if partnering with Next-Financing is the perfect choice for your real estate investing situation.
Timeframe?
Are you a busy investor looking to receive your loan funding fast, but don’t want to wait up to 90 days or more from a traditional Bank or Conventional Lender? We can have your money ready for you in as few as 10 business days so you can start your investing sooner rather than later.
Basis For Loan Approval?
Tired of banks and their strict guidelines, rules, restrictions and credit committees overseeing the approval of your loan application? We use a simple, yet effective common sense approach that first focuses on the property and then looks at your investor experience, credit and ability to close & service the loan.
Credit Score?
Have you been trying to get a loan at the bank, but don’t have the necessary credit score? We are much more flexible in the FICO score department. We accept credit scores down to a 500 and are happy to work with each client’s individual situations.
Required Documentation?
Are you tired of being overwhelmed with the crazy amount of documentation and paperwork that banks require in order to complete their application? We keep it simple by just asking for the basic documentation so you can apply faster and easier.
Application Fees?
Are you trying to keep application costs down, but have come to realize that banks charge you application fees and more to review and process your paperwork? We only charge you for our actual costs to close your loan, so there are no hidden or excessive fees for you to pay.
Loan Types?
Do you need a loan that covers more than just the owner-occupied property loans the bank is offering you? We provide financing to investors and properties of all types – whether it’s residential, multi-family or commercial. Our full suite of products can handle your investment wants & needs with service, speed and competitive pricing.
If you answered yes to any of these questions, then it is time to start partnering with Next-Financing. We can offer you competitive rates starting as low as 7.99% for Fix & Flip Loans or rates starting at 5.99% for Rental Loans and Refinance products. We invite you to apply today and see for yourself – Make the right choice and partner with Next-Financing. Click on the button below and submit your loan scenario (Risk Free) – we will quickly review and get preliminary/pre-approval numbers back to you ASAP. We do not pull credit to produe pre-approvals / term sheets.
What Separates Next-Financing From The Rest?
We are not a bank or a hard money lender, but rather a direct private real estate lender who specializes in short & long term real estate loans. We are a hybrid lender, which means we will use our own internal funds or a bank/lender partner to fund your transaction. Our Real Estate Lending Division was created by real estate investors for real estate investors.
Different Types of Lenders For Real Estate Investors
What are the different financing options available?
When investors find a real estate investment that they are interested in and they plan to either use it as a Fix & Flip or keep it as a Long-Term Rental, investors will typically seek some additional method of financing for their real estate deals.
As a result, investors will begin their search for a lender who can meet their financing needs. Usually, they’ll try and locate real estate loans that will cover the costs of the purchase and renovations if it is a fix and flip property, or they may look for lenders who can provide them with refinancing for their buy and hold rental investments. Some options available for investors as alternative sources of financing include banks and mortgage companies, private money loans, and hard money loans.
Hard Money Loan
Hard Money Loan: Type of loan that is issued to investors based on the “hard asset” or the property itself. While hard money lenders do take into consideration additional factors like the individual borrower’s credit, experience, and income, these are not as high a priority when determining the borrower’s eligibility and loan amount.
Hard money loans are funded through private investors, smaller companies and businesses. Traditional lenders such as banks will not issue hard money loans. Hard money loans typically come with much higher interest rates, sometimes anywhere between 11% and 16% and have shorter terms of around 6 – 12 months. This is a much quicker form of funding, with loans capable of being issued within 5 – 10 days.
When does it make sense for Hard Money and what type of properties?
Real estate investors who focus on rental properties and fix and flip projects will turn to hard money loans as a means of financing when they need to quickly secure a property or find that conventional lenders like banks have failed them. For investors who do not meet the standards that banks set, such as high credit scores and income, they will find hard money loans a good alternative form of funding.
Hard money lenders will mainly focus on non-owner occupied investment properties including single-family, multi-family, condos, townhomes, and even commercial units.
Direct Private Lender – Private Money Loan
Direct Private Lender: Oftentimes, the terms hard money lender and direct private real estate lender get used interchangeably due to the similarities both possess. Both will lend based on the “hard asset” or the property/collateral itself, but private money lenders take into account additional factors beyond just the property such as the borrowers’ credit history, available cash, and income. Private money lenders are not banks but rather companies that loan investors the capital they need to finance their real estate investment deals
Private Money Loans are provided to investors for their non-owner occupied property investments such as a fix and flip or a long-term buy and hold rental. For Fix & Flip properties, these loans are usually short-term, with the expectation to be paid off within one year. For rental properties, private real estate loans can include a 30 year Fixed-Rate Loan, as well as Adjustable Rate Mortgages (ARM’s). These loans can be used to either purchase the property, refinance or get cash out of an existing one.
When does it make sense use Private Money Loans and what type of properties?
Applying for a Private Money Loan is a great option for real estate investors because of the flexibility at which they can work with borrowers. They provide the speed investors will appreciate when trying to close a loan, especially for a fix and flip, faster than the lengthy time frame banks typically take to complete a loan. Additionally, banks tend to not lend on rehab costs, so a private lender may be a better choice
Also, private lenders can offer investors the freedom and ability to scale their businesses beyond what banks or other hard money lenders can provide. Where banks make simultaneous deals more difficult and limit investors to only ten properties to loan on, private lenders usually will not have limits on the number of properties an investor can be working on.
Depending on the private lender, they can loan on commercial or residential transactions. For the residential side of investing, private lenders can work with investors on either single-family properties or multi-family deals. Some specialize in fix and flip and rental properties, thereby providing their borrowers with up to 90% of the purchase and repair costs of the properties, in addition to experience and expertise that will help their borrowers further grow their businesses.
Traditional Bank or Conventional Mortgage
When it comes to applying for a loan, many people’s first thoughts are a conventional mortgage provided by a traditional bank as a source of financing. Almost all banks and mortgage companies eventually sell their loans to Fannie Mae and Freddie Mac, which makes their stipulations for investors much stricter. Some banks are portfolio lenders, meaning that they provide the capital out of their own funds, thereby giving them a little bit more flexibility and freedom to make their own terms and conditions for borrowers, but ultimately they face additional regulations and oversight.
What Can Banks and Mortgage Companies Provide Investors?
For borrowers just starting out in the real estate investing business, the lower rates that banks tend to offer may make this type of loan option more attractive. However, with these lower rates come many more regulations that will affect a borrower’s ability to apply and be approved for these loans.
What are the typical terms of a Conventional Bank or Mortgage Loan?
Unlike hard money lenders or private money lenders, banks are notorious for being more restrictive with their lending criteria, which can make things difficult for some investors. Bank loans will usually require a higher level of credit, an extensive amount of documents and paperwork, can take upwards of 60 days or more to close a deal, and will ask for more available cash and money down. Additionally, because banks will ask for more income verification, self-employed investors may encounter some complications when applying for their loan.
What Hurdles Will Investors Face With a Conventional Loan?
In addition to the previously mentioned lending conditions that banks usually follow, investors who are looking to expand their businesses by doing multiple deals will find a bank loan difficult to meet their needs. The reason being: banks make simultaneous property deals difficult for investors and due to guidelines, anything beyond ten properties is almost impossible to obtain a loan.