Real Estate Investors Cashing Out of Rental Property Portfolios

[Corey Dutton]

Many real estate investors were extremely busy during the recession acquiring rental property portfolios between the years of 2009 to 2013. Because a lot of the distressed real estate acquired by real estate investors during this timeframe was purchased with all cash, it sucked a lot of cash out of their pockets. Not to mention all of the funds that were used up to rehab these distressed properties and get them rented again.

Real estate investors are now seeking rental property loans to recover some of their cash invested in these rental property portfolios acquired during 2009 to 2013. One common conundrum in this type of financing is that properties in a portfolio may be located in different States. Many banks are unable to finance these types of portfolios, so real estate investors are seeking out other loan alternatives such as private money loans to cash out of their rental property portfolios.

Because the requirements of private money lenders are far less stringent than those of bank lenders, they are much easier to obtain by real estate investors. This means real estate investors are able to put cash back in their pockets that was used to purchase and rehab the distressed properties they've added to their portfolios in recent years.