Comments on: How to Finance An Investment Property http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm Property and Realestate Investment Resources Tue, 31 Aug 2010 09:49:28 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Suresh P http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3920 Suresh P Wed, 19 Nov 2008 10:46:52 +0000 http://www.edemocracysymposium.org/?p=776#comment-3920 get a team of people who have money to finance this deal and split the profits. Hard money lenders will lend up to 65% of the appraised value. However, I worked with some that based the loan on the property itself as I am very sharp into finding good deals and have built a trusting relationship with them. You could also control the property by having a 6 month purchase option contract on that property and then assign your rights to a retail buyer or other investor. Trust me, if you can find deals like that, finding the money is easy. Regards... get a team of people who have money to finance this deal and split the profits. Hard money lenders will lend up to 65% of the appraised value. However, I worked with some that based the loan on the property itself as I am very sharp into finding good deals and have built a trusting relationship with them.

You could also control the property by having a 6 month purchase option contract on that property and then assign your rights to a retail buyer or other investor.

Trust me, if you can find deals like that, finding the money is easy.

Regards…

]]> By: Adam B http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3921 Adam B Wed, 19 Nov 2008 10:43:58 +0000 http://www.edemocracysymposium.org/?p=776#comment-3921 Find a house that the current ownder is willing to do "owner financing". Usually you can write a contract and agree to a interest rate. The owner might consider 5 or 6 % interest. You can always ask! Also, the bank is quoting you a higher interest rate simply because you are buying investment property. Believe it or not, they still consider you a "high risk" loan; no matter what your credit rating is. Find a house that the current ownder is willing to do "owner financing". Usually you can write a contract and agree to a interest rate. The owner might consider 5 or 6 % interest. You can always ask!
Also, the bank is quoting you a higher interest rate simply because you are buying investment property. Believe it or not, they still consider you a "high risk" loan; no matter what your credit rating is.

]]> By: Mickymoo http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3922 Mickymoo Mon, 17 Nov 2008 23:29:52 +0000 http://www.edemocracysymposium.org/?p=776#comment-3922 why would he give you anything or take on the risk for free without a cut? He would just invest in it himself if he is in the business. Also, you have to factor in other costs for home ownership such as insurance, property taxes, utilities, maintenance, lease agreements, carrying costs, and your assuming that you will have full occupancy. The only way is to have him act as the lender and place a mortgage on the property but again it won't be for free. why would he give you anything or take on the risk for free without a cut? He would just invest in it himself if he is in the business. Also, you have to factor in other costs for home ownership such as insurance, property taxes, utilities, maintenance, lease agreements, carrying costs, and your assuming that you will have full occupancy. The only way is to have him act as the lender and place a mortgage on the property but again it won't be for free.

]]> By: ujenfo http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3919 ujenfo Sun, 16 Nov 2008 15:11:38 +0000 http://www.edemocracysymposium.org/?p=776#comment-3919 You could try to get the owners of the property to sell to you on a lease option for say 2 years, and lets say that you pay 500 a month, with 500 down, then you would have control of the property and you could do your fix-ups or rent it out and collect the rent.( Be sure and include that in the offer that you can rent the property out) You should be able to get a 2nd mortgage to do your rehabs, (most banks would want to be in 1st position and the owner would hold the 2nd mortgage) If you have control of the property it makes thing alot easier, check out a mortgage broker they can usually find something. I currently use GMAC mortgage and they found a place that we only need 5% down on investment property. Good luck! You could try to get the owners of the property to sell to you on a lease option for say 2 years, and lets say that you pay 500 a month, with 500 down, then you would have control of the property and you could do your fix-ups or rent it out and collect the rent.( Be sure and include that in the offer that you can rent the property out) You should be able to get a 2nd mortgage to do your rehabs, (most banks would want to be in 1st position and the owner would hold the 2nd mortgage) If you have control of the property it makes thing alot easier, check out a mortgage broker they can usually find something. I currently use GMAC mortgage and they found a place that we only need 5% down on investment property. Good luck!

]]> By: Michael K http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3917 Michael K Sun, 16 Nov 2008 14:24:23 +0000 http://www.edemocracysymposium.org/?p=776#comment-3917 80/20 loan - interest only on the investment property. 80/20 loan – interest only on the investment property.

]]> By: la_madrugadora http://www.edemocracysymposium.org/how-to-finance-an-investment-property.cfm/comment-page-1#comment-3918 la_madrugadora Sun, 16 Nov 2008 13:36:43 +0000 http://www.edemocracysymposium.org/?p=776#comment-3918 I would not take out a HELCO on my residence for any reason. Do not invest unless you have 20% cash down payment then get a 30 year traditional fixed. If you hang on to it for 5 years it will be worth it. Good luck!!! I would not take out a HELCO on my residence for any reason. Do not invest unless you have 20% cash down payment then get a 30 year traditional fixed. If you hang on to it for 5 years it will be worth it.

Good luck!!!

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