Tennessee Investment Property Loans
Purchasing or refinancing a Tennessee investment property?
We specialize in acquiring short-term and long-term loans for Tennessee real estate investors. Our private money lenders offer competitive rates on these loan options:
- Fix and flip loans
- 30-year rental property loans
- Vacation rental property loans
- Rental portfolio loans
Benefits of working with us:
- Rates start at 6.75%
- Fast closings
- No unnecessary paperwork
- No personal income verification
- No personal tax returns
- No lease requirements
- No hard pull on credit score
Types of Investment Property Loans in Tennessee
Here are the different types of investment property loan programs we work with.
Tennessee Investment Property Loan Requirements
Every private money lender has a different loan process. Here are the minimum loan requirements for most Tennessee hard money lenders.
Minimum Credit Score: 660
The minimum credit score for a hard money loan is 660. A private money lender will start by running a soft pull on your credit report. Since higher credit scores signal financial stability, these usually come with lower interest rates.
Min. Loan Amount: $75k
The minimum investment property loan amount is $75,000.
- Tennessee Driver’s License or State ID
- Tennessee Corporation Charter (Articles of Incorporation)
- Tennessee Articles of Organization (LLC)
- LLC Operating Agreement
- EIN Number or Letter
- Tennessee Certificate of Good Standing
Ability to Pay Monthly Payment
Conventional loan lenders compare your personal income to your monthly loan payment, primary residence mortgage and more. Private lenders look at the property appraised value, potential monthly cash flow, fair market rent, etc.
Ability to Repay the Loan
This will depend on the type of loan, current interest rates, down payment size and other factors. Traditional banks look at 2 years of personal tax returns, employment history, cash reserves and your credit report. Hard money lenders will look at acquisition purchase price, after-repair value, construction costs, potential monthly rental income, Tennessee rental market trends, etc.
Larger Down Payment
Real estate investment loans generally require a larger down payment. Expect a 10-35% down payment.
Distressed Investment Property Loans in Tennessee
What is a distressed property loan?
A distressed property loan is a short-term loan to purchase and renovate a property in need of significant repairs and then sell it for a profit. Here’s a complete guide to fix and flip loans for beginners.
How do I get a distressed loan?
If you have a credit score of at least 660 and want to purchase a distressed investment property in Tennessee, contact us or call (512) 399-4476.
How do fix and flip loans work?
Fix and flip loans use the after-repair value ratio (ARV) to calculate the maximum loan amount. The lender will predict the market pricing of a real estate property after repairs have been completed. Depending on interest rates, down payment and other lender factors, expect the maximum LTV to be 75%.
For example, let’s say you want to finance a $100,000 fix and flip property. The lender estimates it’ll be worth $200,000 after repairs. This means the maximum a private lender will lend you is $150,000.
The additional $50,000 will come in the form of construction draws. Since the maximum LTV is 90%, you’ll need a minimum down payment of $10,000 for the $100,000 real estate property.
FAQ for 80% LTV Rental Property Loans
What type of investment property loans do you offer?
Curlee Capital works with private lenders who offer:
- Purchase loan options
- Refinance options
- Cash out financing
- Fix and flip loans
- ARM rental property financing
- 30-year rental property loans
- Multi-family loans
Why are the interest rates higher for investment and rental properties?
Hard money loans are specifically designed for real estate investing. Unlike a traditional mortgage, real estate investors do not have to provide personal income, tax returns or even employment history.
For example, rental loans for multi-family properties (also known as landlord loans) are based on the potential revenue stream (monthly rental income) they can generate. Therefore, lenders take on more risk when issuing multi-family loans.
Why are the down payments larger for Tennessee investment property loans?
When compared to a conventional mortgage, investment properties have larger down payments. This is because Tennessee private lenders need to protect themselves when underwriting rental loans and other asset-based loans.
Is a rental property a good investment in Tennessee?
Tennessee’s investment property market offers several advantages for investors, such as a thriving economy, a growing population, and a sustained trend of increasing demand for rental units.
There is no rent control limitations or regulations on security deposits. TN is also known for its quick eviction process. Even the property taxes (0.71%) are low.
Most Competitive Rental Markets in Tennessee
Here are the most competitive rental markets in the Volunteer State to purchase a rental property. Based on cities that are majority renter-occupied, best cash flow opportunities, short-term rentals and even where student housing is constantly needed.
- Johnson City
Does rent go up every year in Tennessee?
Tennessee does not have any rent increase laws. Therefore, landlords can increase rents to keep up with inflation and risking costs.
30-Year Investment Property Loans
Whether you’re looking for 30-year rental loans or a 30 year portfolio loan, we can accommodate both in Tennessee.
Is Tennessee a good place to flip houses?
Tennessee reported an overall 46.30% return in investment. With some metro areas experiencing up to 114% return on investment, such as Kingsport-Bristol (114%) and Johnson City (101.1%).
Best cities in Tennessee for fix and flips:
Here are the best Tennessee cities to fix and flip properties according to The Motley Fool and ListwithClever.
- Johnson City
Curlee Capital LLC
Curlee Capital LLC specializes in Tennessee investment property loans and rental property financing. We’re part of the Real Estate Council in Austin (RECA), Austin Chamber of Commerce and many other real estate associations across the United States. We proudly maintain an A+ rating on Better Business Bureau.
We work with dozens of private lenders and have access to all types of loan programs. Every lender has a different risk tolerance and approves different borrowers. Our expertise is in matching a borrower to a lender who will approve a loan with the best loan terms and interest rates for that specific scenario.
Get Pre-Approved for a Tennessee Investment Property Loan
Contact us to purchase or refinance an investment property in Tennessee.
Contact us to get:
- Free consultation
- Hard money lender expertise
- Less than 1 hour response time
- Up to 80% LTV
Click here to text us