Some real estate investors have a short time horizon and focus on fix & flips—where they are purchasing a property, renovating it, and then selling it for a profit. Others prefer the “buy and hold” strategy where they purchase a property for the purpose of generating a steady flow of rental income. One of our popular short-term loan products is rental loans—loans extended for just this purpose—to allow the investor to purchase the property he intends to hold to generate rental income.
The challenge is how to identify whether a prospective tenant is going to prove to be “reliable.”
The important steps to take are: