Refinancing your Mortgages to Grow Your Real Estate Portfolio

Many investors are looking for ways to increase their real estate holdings while the purchase market is still hot. Refinancing can help you obtain additional capital needed to expand your portfolio or it can help re-arrange the existing debt to further increase cash flow so that you can afford additional properties.

Now is a unique time to look into refinancing opportunities due to the explosion of our current market. This explosion has caused 2017 appraised values to once again reach record levels. So now may likely be the very best time to refinance so that you can grow your real estate business.

Refinancing your mortgage means that you are improving on what you currently have and exchanging it for something better. Many investors consistently revisit the terms of their existing loans so they can refinance at the best time.

To refinance, you need to contact a qualified mortgage consultant and begin the application process. It will require your name, address, social security number, date of birth, job info, income info and asset info (all of your personal information). Once you have provided all of this info, your mortgage professional will be able to begin the process to obtaining your credit report.

The report will give them the list of financed properties that show on your credit. As part of their application process they also need to complete your schedule of real estate owned. Some investors have a spreadsheet that they can share that will quickly help in lining up which mortgage(s) belong to which home(s). Some of the more detailed spreadsheets also give an estimate of the each property’s value and estimated payoff amount.

Next, the mortgage professional looks at the current terms for each of the homes owned so that they can suggest improvements for you. They may offer you a lower interest rate, lower payment, switch to a fixed rate or extend your loan term to help increase your cash flow. By doing this it can help free up additional income to be used for purchase of additional properties.

Your mortgage professional could also help you determine the amount of equity in each home that may be extracted for re-investment. Some investors have not increased their portfolio because they don’t have the additional capital needed to purchase additional homes. Cashing out some of your existing equity could offer you the opportunity to increase your portfolio.

Taking advantage of the timing and refinancing may be exactly what you need to expand your real estate portfolio.

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