Funding Options for Real Estate Investors

Mar 31, 2016 by

Real estate has expanded in the Indian markets, and if you do not have a good credit rating or financial liquidity, this does not mean you miss out on properties. There are still ways to finance a real estate investment

Traditional route
This route functions through credit unions and banks to finance real estate investment. The only problem with this is that a high credit score is needed along with complete documentation of income and debts. Real estate investments involve safe and known methods of financing.

Creative Financing
For those who want to finance in ways that are far apart from conventional methods, seller carries back is an option. It is a type of owner financing where the seller takes the note for the purchase. To make this work, you need to find a seller that receives mostly monthly payments and does not want their property back.

Real estate is a secure and stable investment. It also affords opportunities for rent and property improvement. Another option for financing real estate investment is to use a mortgage company which can issue a standard loan much like a bank. But there are problems in that terms of loans can vary, and there can be no warranty that you will be accepted. Also, mortgage companies tend to have very strict requirements.

Those with a broad circle of family and friends can also ask for help. This way, you will avoid paying the high-interest rate of a bank loan. But there can be issues with borrowing cash from people, because you are not only risking your money but also the relationship by asking them for cash.

Hard money loans or full cash payments are another way to finance real estate investments without losing out on your peace of mind.

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