5 Tips For Financing Your Real Estate Investment Property
Commercial Real Estate Investments in Houston
Interested in investing in real estate? If you have so much as dipped your toes into this world, you know that there are a lot of moving parts with which to contend. From location selection and property analyses to negotiations and contracts, the list of factors to consider is long. As you move forward with the process, though, you also know the three most critical aspects are financing, financing, and financing!
Let’s take a look at five top tips for financing your real investment property:
1. Make sure your credit is in order.
How’s your credit looking these days? You know potential lenders are going to look, so you need to take a peek yourself. The goal in securing a loan is to get the most favorable terms possible – and that means a good interest rate.
2. Think local.
When it comes to choosing a lender, it may be a good idea to look beyond national banking and financial institutions. While they certainly have the deep pockets required to fund your project, they can be exceedingly rigid as far as your loan terms go. Local lenders (e.g. neighborhood and community banks) are often more willing to invest in their own backyard.
3. Get pre-approved for financing.
After you check your credit and try to repair any negative items, visit a trusted bank, mortgage broker, or other lender for pre-approval. This should be in writing so when you begin the negotiation process for a property, you can assure the seller that you’re ready to go and the deal won’t get bogged down or stopped completely because of financing qualification issues.
4. Down payment: the bigger the better.
Making a larger down payment reduces the amount you must borrow, and you’ll see savings when it comes to paying interest over the long haul. But a big down payment is important for another reason.
5. Pull the trigger.
When you’ve done your homework, when you’ve delved into the details, when you’ve crossed every t and dotted every i, it’s time to go ahead with the deal. Often, investors – particularly first-timers – are hesitant. Make the leap and commit.
It is far easier to commit when you’re confident in the property in which you are investing. Contact our team to learn more about investing properties. We can help you put these tips into action and realize the return you need.
For many investors, real estate is uncharted territory. Unlike stocks and bonds traditionally considered “standard assets” real estate is an “alternative asset,”. But just because real estate is an unknown doesn’t mean that it should be avoided as an investment opportunity. When approached correctly, real estate can be a lucrative and reliable way to generate substantial income. We offer you the best plans, encourage you to ask for any of our investments.
Commercial Real Estate Investments in Houston.
Zitro Custom Home, Build in your lot, Real Estate Investments in Houston, Commercial Real Estate Investments in Houston, Residential Real Estate Investments in Houston, Multi-family Real Estate Investments in Houston, Industrial Real Estate Investments in Houston, Retail Real Estate Investments in Houston, Mixed-use Real Estate Investments in Houston