Since the mortgage meltdown, it has become harder and harder for Real Estate investors to receive financing through a traditional lending company and many of them have to find additional means to finance their investment properties.
- Cash
Paying cash for an investment would be the best option but not everybody has the available cash to pay for an investment property. When you own the property, and you would need additional funds to buy another property, you could pull some of the equity out of one property for the other investment. Just make sure you never pull out 100% of equity out of your investment property, you don’t want to cut yourself too tight when you need to sell.
- Seller financing
Seller financing is another option to purchase investment properties. Many times it is done between investors. One investor buying another investors property and they agree to a land contract. When you and the seller agree to seller financing keep in mind that this contract has to follow the Dodd-Frank- Act.
- Private Financing
You can reach out to other investors who are looking to invest into Real Estate but really are not looking to do any of the work themselves. They have the money and are willing to lend it to another investor. Even this type of financing has to follow the Dodd-Frank-Act . The nice part is that many times you do not have to worry about your credit rating and can come to a mutual agreement with the individual on the payment length, amount, and interest rate.
Information given on this page is only for informational purposes and the Settles Team is not a tax advisor, CPA or attorney. No matter what you use to purchase your investment you still should seek out the advice of a capable and experienced advisor like attorney, real estate broker tax advisor, or CPA before starting investing.