Visio Financial Services is talking about a revolution when it comes to its new 30-year real estate loan for residential investors.
Rental360 is a fully amortizing loan for wannabe landlords in the United States. Visio CEO Jeff Ball says it fills the gap for long-term investor financing.
Interest rates start as low as 6.9 percent with loan-to-value ratios up to 75 percent, the company says.
Ball describes it as the“perfect long-term product for residential real estate investors to unlock trapped equity to further grow their portfolios.”
Of course, Visio has other loans, which include everything from no-doc, 12-month fix-and-flip loans to now, low-doc, 30-year-term loans with no balloon.
But its new product is well timed to take advantage of what Visio says is a booming rental market, led by small residential real estate investors who redevelop houses into rental homes.
Second-quarter U.S. rental vacancy rates back this up, having dropped to 6.8 percent – the lowest level since 1985.
The Austin-based company did its own research too.
Its 2015 Residential Real Estate Investor Report found 92 percent of full-time residential investors lacked the necessary capital to grow their businesses, while part-time residential investors cited difficulty accessing capital (35 percent) and a shortage of money to do more deals (58percent).
Ball says Visio has the solution: “Landlords have had few long-term lending options through both traditional and hard money sources, until now.”
Since 2011, Visio says it has grown to become one of the largest lenders of its kind, funding more than 3,000 residential real estate loans to investors.To date, the company says it has raised more than $100 million in debt and equity capital to provide real estate loans to investors in 22 states.