Does Your Realty Business Qualify For A LuxLoc Loan?
Brian looked at the property. It was a gorgeous multifamily, 5-apartment building in Westpark, Irvine, CA. Well, not as gorgeous as it could been since only he could see its potential worth yet. He wanted to buy the property, refurbish it and sell the units to five lucky families. But he was wondering if he would be able to get a real estate loan to fund his dream project.
As a realtor, Brian had been in this business since 2010, just after the turmoil of the subprime crises that had led to a global economic meltdown. It was a time of rebuilding and infusing much-needed confidence in the real estate sector. He had made the most of the opportunities and had been fairly successful in his ventures. This project could be another feather in his illustrious cap.
He had looked at his options for a business loan. But the process of applying was cumbersome, not to mention the high rates of interest and difficult payment terms. Even after furbishing all the details, there was no guarantee that the loan would be approved. He wondered if there was a better option than traditional loans. And then he heard about Vasco’s LuxLoc.
Real Estate Loan for Realtors
Realtors often need business loans to fund the expansion of their business – buy office space, invest in technology, or ease cash flow. Many times, they may need a property loan to buy a property, refurbish it and resell it. Many lenders – banks and private lenders – offer real estate loans for the purchase of real estate.
So what traditional options does Brian have?
Since Brian was looking to buy an investment property (rather than a home for personal use), he had different financing options he could exploit.
Commercial Real Estate Loan
Commercial real estate loans – for building, acquiring, or renovating a commercial property – are usually given for a much higher amount than home loans or residential real estate mortgage loans. If you are wondering how to get a commercial loan for real estate, you need to understand that these loans have a higher rate of interest and a lower term (from five to 20, compared to up to 30 for home loans). Loan-to-value ratios (LTVs) for commercial real estate loans typically range from 65% to 80%. For instance, if the property is valued at $200,000 and the lender demands a 70% LTV, you will be required to make a $60,000 down payment to qualify for a $140,000 loan. This type of loan is the primary option for the vast majority of realtors and is offered by many banks, private lenders, and credit unions. The terms of the loan may vary with property type.
This is a loan offered by private investors to realtors for the purpose of buying real estate. The investor offering money earns from the interest on the amount offered. Terms and conditions are usually decided mutually by the two parties. This arrangement can be formal or informal, depending upon the personal relationships between the two parties.
Qualifying Real Estate Loans
These loans are offered to investors who meet certain qualifying eligibility criteria and are willing to buy property in certain areas. There are different kinds of loans depending upon region and lender. They include such loans as USDA loans, 203(k) loans, VA loans, and so on.
Existing Home Equity
Investors looking to buy another property may look at leveraging the existing equity of their own homes. They might opt for a home equity loan, a HELOC (home equity line of credit), or a refinance.
Hard Money Loans (or Asset-backed Loans)
These loans are backed by an asset that is put up as security by the investor. These are usually short-term (one to five years) loans and have a higher interest rate. Other terms are negotiable. The risk is that in the case of a default the investor may lose a valuable asset.
LuxLoc: A Novel Alternative to Traditional Real Estate Loans
Most commercial real estate loans suffer from a long-drawn due diligence process, lengthy approvals and documentation, and inhibitory loan terms that may cut into the profits of the real estate developer. What if there was an alternative that is secured by an asset, does not look at credit history, offers a lower rate of interest, and allows the loanee to draw as much amount when required? Sounds too good to be true? It isn’t!
LuxLoc is a secured line of credit from Vasco Assets that unlocks the value of your luxury assets that you can put up as collateral. Since it is a line of credit, you have continuous access to money – almost limitless up to the credit limit, so long as you keep paying the amount that you have drawn – and you pay interest only on the amount you have drawn.
The best part of this line of credit is that you do not have to pledge a vital asset – home or company assets – to secure it. You can use any luxury item you own, like an exotic car or bike, precious metals and stones, watches, pieces of art like paintings and sculptures, coins, yachts, and jets. In the unlikely scenario that you are unable to repay the loan, you stand to lose an item that, at most, has emotional value and something that you can live without, and even buy back when things are looking up.
How LuxLoc Can Power a Real Estate Business
LuxLoc is a one-of-a-kind financial solution. LuxLoc offers LTV up to 80% and standard terms with a principal loan amount of a minimum of $20,000 and a maximum of $99,999. For amounts greater than $100,000, which is generally what realtors require, we offer customized plans. LuxLoc offers six 6 and 12-month terms. Borrowers can renew and extend indefinitely so long as they remain in good standing.
- Is a secured line of credit
- Has lower interest rates since it is secured by an asset
- Has a simplified approval process
- Does not have any hidden fees and no nasty surprises
- Does not require any credit inquiries and credit score
- Has a quick turnaround time
With such amazing features, you can only imagine what you can use LuxLoc for. If you are a realtor with luxury assets to pledge as security collateral, you can get them valued free of cost at our offices. Once the valuation is done, we will offer you the best value for your assets; the best deal in town. If you agree to our terms, we can get on with documentation and you can walk away with the first tranche of money within 48 hours, in most cases.
How LuxLoc Helped Realize a Realtor’s Dreams
Brian was thrilled at what he heard about LuxLoc. As a realtor who had done well for himself, he was in possession of a few items that fell under the category of “luxury assets.” A yacht, a few paintings by James McNeill Whistler and Mary Cassatt, two high-end cars, and some heirloom jewelry. A detailed valuation of these assets not only gave him information on which assets to pledge as collateral for LuxLoc, but he also received some deep insights into the items he possessed.
Since his requirement was well over $100,000, he was able to get a great deal with regard to a lower interest rate and repayment terms. After mutually deciding the amount to be drawn regularly, Brian signed on the dotted line and within 48 hours, he had money in his bank. The arrangement suited him perfectly, as he needed money not in a lump sum but in phases. Within a few days, with the confidence that LuxLoc gave him, he was able to buy the property he had set his eyes on and started planning for its redevelopment. And even if he defaulted on the loan – which he was sure he wouldn’t, considering the interest in the property he was redeveloping from some potential clients – he stood the risk of losing something that was not vital to his life.
LuxLoc comes from the house of Vasco Assets and has been helping thousands of individuals and small business owners unlock the value of items that most of us think of only as holding potential and emotional value. We never thought that this value can be made kinetic. But with Vasco’s many thoughtfully-designed financial products, you can now realize your financial objectives by leveraging the inherent value of your luxury items.
So whether is for planning that long-awaited vacation, funding a loved one’s education, expanding the small business, or tiding over a financially challenging scenario, Vasco’s luxury loan products may prove to be your savior.
Realtors can leverage the flexibility and power of LuxLoc, Vasco’s newest financial product to fund their projects – buying a new office, easing a cash crunch, buying a new property for fix-and-flip, and so much more.