A Comprehensive Guide to the Best REI Funding from The Real Estate Funding Experts

Looking for the best REI Funding? Let's start with the question: what is the best REI Funding? When it comes to funding your real estate investments, you want to choose the best option for your specific deal and situation. We have answers!

Of course by ‘REI Funding’ we are referring to real estate investment funding–any type of financing used for funding investment real estate deals. Whether you’re a flipper, builder, or landlord, all real estate investors need funding. Even when you have your own cash, it often makes more sense to rely on REI funding for increased leverage.

Types of REI Funding

REI Funding for Rental Purchases

30 Year Rental Property Loan

The 30 year rental property loan is often considered the gold standard of loans for purchasing rental property.

Rehab to Rent Bridge/Rental Purchase Loan

Rehab to rent is a strategy to use when you want to purchase a property to rent out to tenants, but the property needs renovations before you can rent it out for the market rent amount.

This loan covers both the purchase and the rehab costs, allowing investors to improve the property’s value and rental potential before refinancing into a long-term loan.

DSCR Loan

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REI Funding for Refinances and Cash-out Refinances

Refinance Loans

Refinancing allows investors to replace an existing loan with a new one. This is often used to secure better terms or interest rates. It’s a strategic move to reduce monthly payments or adjust the loan’s duration. It can also be used to replace a loan that has become due, or to pull cash out of a property that has sufficient equity. The latter is called a cash-out refinance.

Cash-out Refinance Loans

This option enables investors to tap into the equity of their property, receiving a lump sum of cash while refinancing the mortgage. The funds can be used for additional investments, renovations, or other financial needs.

Key Features of the Best REI Funding

As we’ve mentioned, the best REI Funding for you will depend on your specific deal, situation, and real estate investing goals. That said, from working with hundreds of borrowers, we’ve found that the best REI funding generally meets the following criteria:

  1. Flexible
  2. Good terms
  3. No pre-payment penalty
  4. High allowable LTV
  5. No DSCR calculation (if a rental loan)

Choosing the Right Funding for Your Investment

The optimal funding solution depends on your specific investment goals and property types:
• Fix-and-Flip Projects: Consider short-term bridge loans that cover purchase and renovation costs.
• Long-Term Rentals: Opt for 30-year rental loans offering stability and predictable returns.
• Value-Add Properties: Rehab-to-rent loans can finance both acquisition and improvements.
• Portfolio Growth: Cash-out refinancing can provide capital for expanding your investment portfolio.