Future rent use cases

December 13, 2021
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Get your future rent, today

As a rental property investor, you might be looking for more ways to access money. Imagine if there was a way to immediately get access to all the money you're expected to earn from your rental property leases while budgeting for the regular debt obligations and expenses that come up. Would you decide to trade your rental revenue? What would you even do with all that upfront cash?

Enter Nophin

Nophin lets property investors access their future rent, in advance. If you have an active rental agreement, Nophin can be a great loan and equity-free alternative to traditional monies where you simply trade future money for a discounted lump sum. In as little as 1 day, you can access 1 year's worth of annual rental income.

Common uses of cash

We're always amazed at what our clients are doing with extra liquidity. As property investors ourselves, we were keen to learn the best-in-class habits of successful landlords and this blog post will dive into some of the most common use cases we're seeing:

Landlords use future rent to pay for expenses

It's no secret that maintenance is a pain - the cost, the labor, and the work involved is no fun at all. If your portfolio is large enough, it's likely that something will require maintenance. We've seen many stellar landlords set aside around 6 months of rent as reserves. But, with the national APY averaging around 0.07% (FDIC, December 2021) and inflation rising 6.8% (BLS, November 2021), landlords are trading negative purchasing power for peace of mind.

With Nophin, we've seen landlords reduce their reserves and simply trade several months of future rent to pay for that roof re-tile, plumbing maintenance, or A/C replacement. Since Nophin can get landlords access to their money quickly, landlords now have more options than ever.

Property Investors advance their rental income to grow their portfolio

Andrew Carnegie once said that 90% of the world's millionaires became wealthy from real estate. Everyone from accidental investors to r/FIRE enthusiasts are realizing the freeing power of real estate investing.

The best time to invest was five years ago. The second best time is now.

Nophin makes this process easier because landlords get to use their current portfolio's revenues to pay for net new portfolio acquisition. We've seen landlords acquire properties and advance their future rent that then serves as a down payment for the mortgage of a second set of properties.

In other words, for the same amount of equity dollars in, you can grow your portfolio quickly without touching debt at all. That's incredible! Property investors don't have to worry whether their closing will happen on time because the money is delivered directly into their preferred account quickly and efficiently.

Property Investors fix distressed units in their portfolio

One surprising use case is that some investors have used the forwarded money to fix up a distressed property in their portfolio. Landlords can forward the cash flow generated by part of their portfolio or their entire portfolio to pay for renovations.

In some cases, the refinance part of BRRRR may make sense. Though it's no surprise that the cash-out refinance process is often arduous and needing to get together all the documentation just months after the initial mortgage process might be too much of a hassle. Some landlords are choosing Nophin to cash out their money without taking on a larger debt load.

Better yet, if you are set on doing a cash-out refinance, why not use a mortgage to cash out and then forward your future rent to increase your Day One Cash on Cash returns?

Access 1 year's worth of rent in as little as 1 day

We're excited to new use cases we're seeing with the money we forward to landlords. If you're just as excited as we are on the future of rental property finance, apply on our site today. We're eager and ready to serve you!

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Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

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