Real estate is a tried and true method for wealth building, and long-term rentals are the foundation of many investors’ real estate portfolios. Rental properties have good reason to be popular among investors because along with providing steady income, they have many other benefits that help build wealth in the long-term. They have the potential for appreciation over time, offer significant tax benefits, and can even be managed passively. They also open up the path to additional property acquisitions through equity building and refinancing.
Real estate brokers who market rental investments to their clients can build trust and loyalty while building a reputation as a trusted resource in the real estate investment space. Your ability to help investors grow their portfolios depends on how well you understand rental property investment and private lending solutions. Continue reading as we highlight the benefits of long-term rental properties and explain why they are a compelling choice for real estate investors both new and experienced.
Rental properties are one of the most stable and predictable methods of generating returns through real estate. By getting tenants to sign 6 or 12-month rent contracts, property owners can count on consistent monthly income. This reliability makes long-term rentals an attractive investment vehicle for your clients, whether they are first-time buyers or seasoned investors.
For brokers, it’s important to highlight the versatility of rental properties. There are different kinds of rental investments, from smaller condos and townhouses to large multifamily homes which provide multiple income streams. It’s generally recommended to get started with a smaller rental property before expanding into a multifamily investment, but there is something for every level of an investor’s experience, and great potential to scale a portfolio over time. By offering tailored loans for real estate investors, brokers can position themselves as the go-to source for financing solutions that support their clients’ long-term growth.
As a mortgage broker or wholesale partner, understanding the advantages of long-term rentals will allow you to better communicate their benefits to clients. Here’s why these properties are a top choice for investors:
Having a reliable source of monthly income helps investors plan their finances accordingly, and the rental payments they collect help pay off their mortgage while also providing them with a consistent return.
When compared to short-term rental investments, like Airbnbs, there is less turnover to deal with in long-term rental management. This allows investors to focus their time and energy on other tasks like growing their portfolio instead of spending time managing bookings. Brokers can highlight this as a selling point when recommending long-term rental property investment loans.
Rental properties have great potential for appreciation because they are always in demand, and people will always need places to live. This appreciation can grow significantly over time, providing investors with a solid return on top of their monthly rental income. When offering financing solutions, emphasize how your clients can leverage this appreciation for future equity-building opportunities.
Many tax benefits come with operating rental properties. Most of the expenses associated with the investment can be deducted from the investor's yearly returns. Encourage your clients to explore cost-segregation studies for depreciation benefits—further enhancing the value of their investment.
Long-term rentals enable investors to build equity while tenants effectively “pay down” their loans. By using rental income or refinancing methods, brokers assist their clients in using their equity to grow their investment portfolios.
Most real estate investors like the simple management aspect of long-term rentals especially when they use professional property managers. Brokers can explain how financing options like long-term rental loans can facilitate this passive income stream.
Through private lending solutions, you can differentiate yourself as a broker or wholesale partner by providing customized financing choices for clients who invest in rental properties. Unlike conventional mortgages, private loans provide:
When you offer investment property loans through private lenders you prove yourself as a valuable partner who can offer a variety of lending solutions.
By helping beginner real estate investors understand long-term rentals you will gain their trust and create long-term connections. Here are a few tips:
Brokers help clients succeed by giving them specific market knowledge and helping them secure attractive financing options.
It’s essential for brokers to address the challenges associated with rental properties so clients can make better-informed decisions.
When brokers show their clients effective ways to solve problems they build trust through their professional experience.
The easiest way to save on rental property financing is to find a trusted lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. RCN Capital also has flexible and competitive loan options available. Are you looking to purchase or refinance an investment property?