Online real estate marketplace AssetAvenue has unveiled a new product to finance rental property purchases of all types. It is designed for fix and flippers looking to generate income from rental properties.
In a release Asset Avenue said said the loans are more commercial than residential. AssetAvenue prioritizes debt-service cover ratio over debt-to-income ratio so loan approval is driven by rental income more than personal earnings. It opens up lines of credit to entrepreneurs often rejected by traditional lenders.
“Since its inception in 2013, AssetAvenue’s commitment to entrepreneurs has been unwavering, and our new rental loan product is a natural extension of that,” CEO Varun Pathria said. “We are focused on the person who wants to invest in real estate, plain and simple. We give them the resources, tools and frictionless financing they need to be successful.”
Mr. Pathria added quote to close can take as little as 15 days.
Loan amounts range between $75,000 and $1 million and the maximum allowable LTV ratio is 75 percent. Interest rates vary between 6.5 and 7.5 percent.