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At Visio Lending, unlike many of our competitors, we only do one thing: finance rental properties. We pride ourselves on our laser-focus and expertise, which simply cannot be matched. Think about it: would you go to a podiatrist for a headache? Or a tax attorney for a divorce? There is something to be said for going to a specialist for the specialty you need.
Besides enabling us to become the market leader in rental loan originations, there are other benefits of financing your rental loans through a rental loan focused lender. Many real estate investors not only own rental properties, but also flip houses as an investment strategy. There is one particularly compelling reason to finance rentals and fix and flips with different lenders: cross-default provisions.
Essentially, through a cross-default provision, if a borrower fails to pay interest or principal on time for one loan, then the lender has the right to default that borrower on all of their loans with that lender, creating an almost domino effect. Flipping homes is an investment strategy that is subject to market conditions, and sometimes even the best flippers can default on their flips, which could affect all of their rental properties if they are under the same lender.
Opting to finance your rental properties through a specialized rental lender is just a good practice in protecting your assets, similar to the concept of investing through a Series LLC. Convinced you need to finance your rental properties through a rental lender? Contact us to grow your rental portfolio.