Successfully financing residential real estate investments

Expert in individual 100% / 110% / 120% financing for real estate investors.

As a company that focuses mainly on residential real estate investments between 500,000 euros and 5 million euros, we have already placed more than 50 million euros in financing volume with various partner banks for our clients and for ourselves. Our main focus is on the presentation of individual 100% / 110% / 120% financings (financing of the complete purchase price, possibly also plus ancillary purchase costs or renovation costs), which enable our clients to continuously build up their real estate portfolio.

Why full financing is the top class

Reduced supply

Almost all banks are happy to provide 60% financing, also known as real estate loan financing, as the risk of loan default is extremely low due to the very high equity ratio.
The situation is different with 100%, 110% or 120% financing. Many banks do not support such a project.

More frequent rejection

Both you as a person, your creditworthiness and your project will be closely scrutinised, as the bank wants to limit the risk of loan default in the case of potential financing.
Many banks initially “tempt” with full financing, which can, however, be rejected in the further course for a wide variety of reasons.

Lack of speed

Especially in the case of attractive real estate investments, financing must be arranged at lightning speed. Therefore, a suitable financing partner is needed.
If the financing process takes too long, this can jeopardise the acceptance of a bid for a property.

Financing with PREIV: Our USP's

Exclusive partnerships with banks

While few banks even offer real estate investor friendly 100% / 110% / 120% financing, we have exclusive partnerships with banks that know and understand our approach. This enables us to offer our customers individual and fast solutions.

Investors-Thinking

Growth-oriented financing that preserves the necessary flexibility and conserves equity is of enormous importance, especially for sustainable and long-term asset accumulation. Even the wrong form of financing can be growth-inhibiting.

Personal, Individual & Fast

Whether cash-flow-oriented financing for asset accumulation or repayment-oriented financing for asset protection - there are a wide variety of financing strategies with different objectives that need to be discussed on the basis of the personal and financial situation.

The triad of any real estate investment financing

Person

Banks attach a lot of importance to your personal impression as well as your personal competence as a borrower.

Credit rating

The bank checks your monthly debt service capacity (income – expenditure) as well as your existing net assets (assets – liabilities).

Project

The bank evaluates your specific real estate investment and uses this to determine a mortgage lending value.

Important terms of a financing

Interest

Interest is the price the bank charges you for the money you lend it. Interest rates are currently very low because banks can refinance themselves cheaply.

Fixed interest rate

Interest rates can be set for a longer period of time, e.g. for a year. 10, 15 or even 20 years. Theoretically, variable financing without fixed interest rates is also possible for a real estate investment.

Loan type

As a rule, real estate financing is carried out by means of an annuity loan. In this case, the instalment to the bank remains the same over the entire period of the fixed interest rate, while the share of the repayment increases and the share of the interest rate decreases.

Special options

Should e.g. renovation costs be financed? Can the repayment be suspended initially ? Should short-term interim financing be provided first ?

Repayment

The repayment can be described as "saving into one's own pocket" and is freely selectable upwards. The optimal repayment amount depends on many individual factors.

Special repayment

Unscheduled repayments give you, the borrower, the opportunity to pay off the remaining debt more quickly. This can be agreed individually with the bank. As a rule, this option increases the interest rate slightly.

Land charge

If you take out a loan to pay for the property, the financing bank will require that a land charge be registered in the land register. The land charge is a so-called mortgage. It serves the bank as collateral for the loan

Mortgage lending value

The mortgage lending value is the value that the banks assume as the price that can be achieved at any time when selling the property. The mortgage lending value is usually 10%-30% below the purchase price of the property.

Equity investment

Your equity investment can significantly influence the interest rate. The risk for the bank becomes lower depending on the amount of capital invested, so the bank is also willing to grant you a lower interest rate.

Follow-up financing

When granting the loan, the bank already checks whether follow-up financing is possible without any problems after the fixed interest rate period expires. As a borrower, you must ensure that the instalment to the bank is affordable even at a higher interest rate (stress annuity).

Amount of funding

The absolute amount of financing also has an influence on lending. Your monthly credit rating and the amount of financing should not be in an unhealthy relationship. For example, you can finance If renovation costs are still included, the bank must take this into account.

Leverage effect

The leverage effect means that, with the help of borrowed capital, you earn a return on money that you do not use yourself.

Choosing the right bank

Volksbanken, Raiffeisenbanken & Sparkassen

Thanks to their local branches and proximity to customers, Volksbanken and Sparkassen can provide more individualised financing. Many of these banks operate under the regional principle, so that financing is only presented if the customer or the property has a connection to the business area.

Major national & international banks

Major banks such as Deutsche Bank or Commerzbank are often only happy to finance real estate investments above a certain investment amount and tend to serve major clients. In addition, high loan-to-value ratios are granted less frequently.

Online banks / direct banks

Due to the digital and centralised structure of online banks and direct banks, it is usually the algorithm that decides whether a real estate investment is possible. Therefore, these banks tend to be good partners for simple projects.

Pfandbrief banks, insurance companies or building societies

An alternative to financing banks are insurance companies or building societies, which offer very attractive conditions or long fixed interest rates in individual cases. Mostly, however, the flexibility and speed are less given.