What Are Buy and Hold Loans?

Buy and hold loans are a short-term loan product targeted for real estate investors who are looking to purchase and renovate a property prior to refinancing with a longer-term conventional loan.  Loan funds would typically be used for the purchase and renovation of single-family, small multi-family, and mixed use properties.

For Who or What are Buy and Hold Loans Best Suited?

Buy and hold loans are specially structured for real estate investors wishing to purchase a property and hold on to it for a time. Usually the property is rented out to a tenant in order to cover the costs of financing.

There are many benefits to the buy and hold strategy of real estate investing. Cutter Hill Capital’s customized Buy and Hold loans allow the borrower to finance their short term project while they make improvements or find tenants before refinancing into a long term loan product. In the meantime, their property appreciates and they increase their financial security.