When a person buys a real estate property it is mainly used for residential or commercial purposes. Some people especially those who are dealing with real estate business are not after owning a personal residence but would want to have it as an investment property to generate profit. Some may have extra money to spare but not all investors have enough funds to support this type of venture. So usually the answer lies on investment property financing to help you secure a property. investasi emas
This investment property financing is in the form of loan and some investors borrow from their family and friends but nowadays, there are other alternatives like mortgage brokers, banks and other lending company. The most common loan program for investment property is for the purchase of residential properties with one to four units. Those properties with more than five units are already considered a commercial property by lenders. As soon as you acquired the money you need to buy the property, you can look for single family homes, condominiums or apartment buildings, IRS properties, foreclosed homes and HUD properties, which you can use to flip or make profit out of rental income. Investment property financing is going to be a big help in buying these properties that will give you the highest return on your investment. Personal credit score history won’t really allow you to get as much loan but if you can establish a good “business” credit score, an investment plan and a collateral in some cases so that it will be easier for you to get a loan to invest in a commercial property.
However, not all lenders offer investment property financing. They offer financing mostly to those who are going to use the property as a personal residence so in order to obtain this investment property financing, you will need to seek those lenders that have programs for investment property loan. There are credit unions, commercial banks and other lenders that offer real estate lending for business purposes. Do you know the reason why it is difficult to get a business loan or why it is hard to obtain an investment property financing? Because it is considered a high risk loan and investors can just walk away from it if value of the property drops below the amount of loan. No wonder banks would charge a higher interest rates and shorter repayment periods. With their high interest rates and lending fee it will surely eat up your profit, so it is best for you to find the right lender.