Everything You Need to Know About Real Estate Investment Loans with Park Place Finance
5 minute read
July 31, 2023


Securing a real estate investment loan might seem like a daunting task, but with the right lending partner, it can be a smooth process.

Park Place Finance offers an efficient and personalized loan process to help you see real estate investment success.

To help you understand what to expect, we’ll walk you through each step, ensuring that you understand each phase.

By the end, you’ll be able to make informed decisions about your next real estate investment loan.

Get started with your real estate investment loan.

Which real estate investment loans does Park Place Finance offer?

Park Place Finance offers several types of loans tailored to meet the unique needs of real estate investors:

  • Bridge loans: Ideal when conventional financing isn’t available or will take too long to close. Benefits include flexible qualification requirements, fast and simple closing, and term length options.
  • Fix and flip loans: Designed to fund 100% of your renovation costs and close quickly to keep you competitive. Benefits include flexible qualification requirements, fast and simple closing, and term length options. Studies show that fix and flips achieve an ROI of 40.6% on average.
  • DSCR loans: Perfect for real estate investors seeking long-term rental properties. Benefits include financing based on the property’s expected cash flow, 30-year fixed rate, and closing in 2-3 weeks.
  • Ground up construction loans: Designed to provide a streamlined funding solution to build single-family projects. Benefits include flexible qualification requirements, fast and simple closing, and term length options.

What does the real estate investment loan process look like?

The real estate investment loan process might appear complicated, especially if you go the traditional mortgage route, which can take 45 to 60 days to close.

Luckily, with a private money lender like Park Place Finance, it’s quite straightforward and streamlined, closing in just 3-5 days:

  1. It begins with market research and pre-qualification, followed by securing your property and loan.
  2. Then, your application goes through processing and underwriting before closing and servicing.
  3. Post-closing, your loan transitions to a servicing partner while you work on your investment property.
  4. After you successfully exit your investment, you can repeat the process with a new property.

Understanding each step of this process empowers you to navigate real estate investment loans confidently.

1. Market research and pre-qualification

Before you begin, you must research properties in areas eligible for a private loan. Make sure the areas are not rural and have a Metropolitan Statistical Area (MSA) of over 50,000 people.

For instance, let’s say you’re eyeing a property in Austin, a vibrant city with an MSA population of over 50,000 — that’s an ideal place for private lending.

At this stage, contact your dedicated Account Executive at Park Place Finance.

For example, suppose you find a property listed at $250,000 with the potential for a $100,000 renovation and a projected ARV of $450,000. Your Account Executive will guide you on what’s needed to get this deal approved and funded.

2. Securing Your Property and Loan

Once you’ve put the property under contract, notify your Account Executive so that the process adheres to your desired timeline.

It’s also important to define your exit strategy. Whether you’re planning a fix and flip, short-term rental, or long-term rental, the strategy will dictate your loan structure and terms.

For example, imagine securing the Austin property for $250,000, allocating $100,000 for rehab, and targeting an ARV of $450,000. Your exit strategy is to flip the property within a year.

Based on this strategy, Park Place Finance will structure your loan accordingly.

3. Processing and Underwriting

The processing team will gather your application paperwork, order your appraisal, and run credit checks. This diligent process ensures a seamless loan approval journey.

The underwriting team, on the other hand, evaluates the risk associated with your loan and collects the necessary documentation.

For example, suppose you have a healthy credit score of 700 and a steady income, making you a low-risk borrower. The Underwriting team will use this information to facilitate your loan approval.

4. Closing, Servicing, and Post-Closing

Park Place Finance prides itself on closing loans swiftly. Fix and flip loans typically close in just 3-5 days, ensuring you can get started on your project right away.

Our in-house servicing department stays in constant communication, reminding you of crucial dates like your loan’s maturity date.

For instance, if your loan matures in 12 months, you should aim to have your project 50% complete 6 months in and 75% complete 3 months prior to your loan maturing.

5. Repeat Your Success

Your Account Executive remains in touch, even after your deal has been funded.

When you’re ready for your next project, your dedicated contact will be there to help navigate the process again.

Why should you define your exit strategy early on?

When you have a clear exit strategy, it not only gives you a roadmap for your investment but also assists your lender in understanding your plan, making loan approval smoother.

The benefits of defining your exit strategy

  • Minimizing financial risks: Establishing an exit strategy reduces financial risks and potential losses.
  • Aligning investment goals: Defining an exit strategy aligns your investment goals with the project timeline.
  • Facilitating financing: A clear exit strategy helps secure financing and streamline loan approval.
  • Efficient resource allocation: Knowing your exit strategy enables effective resource allocation.
  • Maximizing profit potential: An early exit strategy optimizes the project’s profit potential.
  • Flexibility and contingency planning: A defined exit strategy allows for flexibility and contingency planning.

Real estate investment steps in a nutshell: a summary

In your real estate investment loan journey with Park Place Finance, remember the following steps:

  1. Conduct market research and get pre-qualified.
  2. Secure your property and the loan.
  3. Develop a clear exit strategy.
  4. Proceed with loan processing and underwriting.
  5. Experience quick loan closing.
  6. Stay in contact with Park Place Finance for post-closing services.
  7. Repeat to continue your investment success.

Get started with your real estate investment loan with Park Place Finance

At Park Place Finance, we turn the loan process into a seamless experience with professional support at every step.

Are you ready to kickstart your real estate investment journey?

Call us at (866) 407-1599 or fill out our online form to get started today.

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