Despite getting a competitive interest rate on this property, this Capital Fund 1 borrower also managed to pay off their buy and hold loan in less than two months with no prepayment penalty! At Capital Fund 1 we don’t penalize our borrower’s for doing a good job and either selling or paying off their loan within the loan term’s time frame, and is one of the reasons this borrower chose us.
No Prepayment Penalties
With most of our investment loan products we do not require a prepayment penalty when the borrower pays off their loan or sells the property prior to their maturity date. Why punish someone for doing a good job and paying off a property early?
By having no prepayment penalties, you as a real estate investor can actually make more off of your investment property if you sell the property before the loan’s maturity date. Without the prepayment penalty real estate investors are able to focus on closing their deal as opposed to finding the funds to take care of a prepayment penalty, and if you are wholesaling a property then it doesn’t punish you for selling a property quickly like you intended to.
When purchasing from a wholesaler, like our borrower did, you may need to work on a quick schedule and have next day financing lined up, and that’s where one of the other reasons our borrower chose Capital Fund 1 for their buy and hold loan. Our team was able to underwrite the property and provide a loan quote on the same day as the request and financed the borrower’s purchase on time.
Real estate investment purchases require fast action, and that’s exactly what we do at Capital Fund 1. We typically underwrite and provide a loan quote in the same day or 24 hours, depending on the property. This comes in handy when financing trustee sales, wholesales, and for refinancing investment properties in some cases.
Planning your next investment property purchase or need to refinance? Call Capital Fund 1, LLC today!