Whether you have five rental properties, ten rental properties, or even 50 rental properties, our cross-collateralized single loan option with JVM Lending and Kiavi could be the perfect solution for you! In this comprehensive guide, we’ll explore how Kiavi’s innovative cross collateralization mortgage solutions can help you leverage equity, consolidate debts, and finance multiple rental properties under one convenient loan.
One Loan For Multiple Rental Properties
Are you a real estate investor with multiple properties and you want to:
- Leverage your equity to pull more cash out to buy more properties?
- Consolidate all of your mortgages into a single loan?
- Move all of your properties and your mortgages into a limited liability corporation (LLC), to protect your assets?
- Simplify your life and your bookkeeper’s life?
- All of the above?
If your answer is YES to any of the above, we have the financing you’re looking for — with the rental portfolio loan built for investors like you.
What Is Cross Collateralization?
Cross collateralization is a financing technique where multiple properties serve as collateral for a single loan. This approach is particularly advantageous for investors looking to expand their portfolio without the hassle of managing multiple loans.
Unlike traditional financing methods offered by most commercial banks and agencies like Fannie Mae and Freddie Mac, Kiavi specializes in providing loans that embrace the power of cross-collateralized borrowing, and therefore allowing mortgage lenders like JVM Lending to provide these loans as well. This means more flexibility, less paperwork, and potentially more investment opportunities for you.
Why Choose JVM & Kiavi for Your Cross Collateralized Mortgage?
Need To Cash Out?
Cash-out loans are not worth the trouble if you can only pull a limited amount of cash from each individual property with an individual loan. But if you can get a single loan that allows you to pull all the cash you need in one fell swoop with a single loan that leverages all of your properties, a cash-out loan can be well worth the effort.
We recently helped an investor with small properties across the Southeast who was in this exact position. He had ten properties on the lower end of the value scale, and all of them had adequate equity cushions, but none of them had a sufficient amount of equity in dollar terms to make individual cash-out loans worth the time and expense. This consolidation loan turned out to be the perfect solution, as it not only rolled up all ten of his loans into a single loan, but it also provided over $200,000 of cash that he promptly employed to invest in additional properties.
Avoid The Loan Servicing Nightmare
Are your loans getting sold over and over to new investors, making it very difficult for you or your bookkeeper to manage your payments? That was also a major concern that the investor we mentioned above had as well. Our portfolio consolidation loan was the perfect solution.
Peace of Mind
When investors separate their personal financial life from their business financial life, they can sleep much better. Our portfolio loan offers this peace of mind by allowing you to borrow as an LLC and by offering what are called “carve out guarantees.”
Cost Savings
Our cross-collateralized portfolio offers substantial savings in two ways. For many borrowers, our portfolio loans offer lower interest rates and lower payments. But – equally important are the significant savings to be found up front – with far lower closing costs!
Our investor with ten properties above was looking at total closing costs in the $35,000 to $40,000 range – with individual loans! Our portfolio loan has closing costs that are only a fraction of that! This is both because we often do not require individual appraisals and because you avoid all of the extra underwriting, title, escrow, paperwork and notary fees that go into the funding of multiple individual loans.
Operational Efficiencies
You will have only one payment to manage and worry about. You will also have only one loan servicing agent – which may be the best aspect of this loan.
Easy Underwriting and Lending Process
This is effectively a commercial loan, with a much more straightforward and easier underwriting process than a residential loan. We focus primarily on your property’s values and cash flow, and we don’t make you chase down an endless supply of documents.
Competitive Rates
Yes, this loan has competitive rates, based largely on the value of your portfolio and credit scores. Even better, the bigger your portfolio, the better your rate!
Flexible Loan Terms
We have various term lengths and prepayment options, and we are more than happy to partner with you to structure a loan that works for your business!
How Can Our Cross Collateral Loan Benefit You?
Imagine having the ability to pull significant cash out from your equity to buy more properties, consolidate all your mortgages into one, or even transfer your portfolio into an LLC for enhanced asset protection—all with a single loan.
Kiavi’s rental portfolio loan is crafted with real estate investors in mind, offering peace of mind, cost savings, and operational efficiencies that are hard to match. Whether you’re looking to streamline your investments or access more funds to grow your portfolio, utilizing JVM Lending and Kiavi’s cross collateral loan could be the perfect solution.
Leveraging JVM Lending in Kiavi’s Network for Streamlined Real Estate Financing
As a provider in Kiavi’s extensive network, JVM Lending enhances the financing options available to real estate investors. This partnership merges JVM Lending’s mortgage expertise with Kiavi’s innovative financing solutions, offering a comprehensive suite of options for investors aiming to expand or consolidate their real estate portfolios.
Key Benefits for Investors:
- Enhanced Financing Options: Access to Kiavi’s wide range of loan products through JVM Lending.
- Expertise and Efficiency: Benefit from JVM Lending’s vast mortgage knowledge and a streamlined loan process.
- Competitive Advantages: Enjoy competitive rates and tailored financing solutions to fit your investment strategy.
This collaboration simplifies the financing journey for investors, providing a one-stop solution that supports your real estate goals with efficiency and expertise.
Frequently Asked Questions
Do the properties have to be in the same area?
No. The properties can be spread across multiple cites are even states. They just need to all be in the United States, and they need to be in states in which we are licensed.
Do I need to have good credit?
Yes. But not perfect credit. We will evaluate all borrowers on a case-by-case basis, and borrowers with higher credit scores will get better terms.
What is the minimum number of properties I need for this loan?
We require a minimum of 5 properties.
What is the maximum number of properties for this loan?
There is no maximum.
What is the minimum value for any individual property that is part of the portfolio for this loan?
No individual property can be worth less than $60,000.
Will I need to pay for appraisals for every one of the properties in the portfolio for this loan?
No. Our underwriters do individual analyses, and they do not require appraisals.
Do you allow cross collateralization through which multiple properties can be used as collateral for one loan?
Yes, that is the entire purpose of this loan.
What is the maximum loan-to-value I can get, assuming my credit is strong?
We can lend up to 80% of the value of your entire portfolio.
Do I need to show substantial income and paperwork?
No. Our underwriters focus primarily on the properties and their income potential.
Can I include any owner-occupied properties in the portfolio?
No. Every property must be an investment property.
Can I close this loan under my LLC or Corporation?
Yes. That is the only way you can close this loan. We do not allow anyone to borrow in their name.
Next Step: Get Approved For A Cross Collateralization Mortgage
Whether you’re an established real estate investor or just starting out, financing your ventures can often be the biggest hurdle. Our cross collateralization mortgage solutions offer a unique opportunity to finance multiple rental properties under one loan, bringing together convenience, cost efficiency, and flexibility.
Explore the possibilities with JVM Lending today and unlock the full potential of your real estate ventures. Start your JVM loan application online or contact us today to discuss how we can simplify your rental property financing and take your investment portfolio to the next level.
