Category: Hard money rehab loans

5 Tips to Get Financing for Commercial Real Estate Investing

    Finance Tips

Secured home loans

Are you looking to get into commercial real estate investing? There are a lot of opportunities in commercial property investing if you work at it. If you are looking to find investment mortgage lenders to help finance your plans, here are some tips to help you get what you need.

  1. You need a much bigger down payment. If you own your own home, you know that when you buy property, you have to put some of it down up front. If you want to secure financing from traditional investment mortgage lenders, you are going to have access to enough capital to make a much larger down payment than what you have to put up for a residential property. Most investment mortgage lenders require people come up with at least 20% to be able to get a traditional loan. If there is any way that you can come up with an amount closer to or more than 25%, you will put yourself in a position to get a much better deal on your loan.
  2. Run your own credit report. Before you try to get a loan from investment mortgage lenders for your commercial real estate investing plans, you need to look at your finances and credit score with as objective an eye as you can. If you can improve your credit score and become more of a good credit risk you will appeal more to real estate investment lenders. The lower your credit score, the more expensive your loan terms will be. You will pay more in interest and more in fees.
  3. Try credit unions and community banks before you try bigger financial institutions. If you find that you are not able to come up with the 20% that most mainstream investment mortgage lenders require for your loan, you may want to talk to the local credit unions and community banks for help. Their goal is often to help local people get loans for business plans that help the community. If you have an idea for a new business or to get into commercial real estate investing and can show how this will benefit the community, you have a better chance of getting some help from these financial institutions. They also have a lot more leeway and may be more able to say yes to you when you go to them looking for a loan.
  4. Will the owner of the property help with your financing? When people are turned down by investment mortgage lenders, you may want to look into to options for owner financing. It used to be that one of the commercial real estate investing basics that people selling real estate were very wary of buyers who looked out for owner financing. This is becoming more and more acceptable. Before you head down this road, you need to develop a strategy. You need to have an amount you need a loan for and to work through the terms you would accept. You need to be able to make a great pitch and have all of your i’s dotted and t’s crossed before you approach anyone about owner financing.
  5. Be creative. If you have found a really good property that you think you can really do something with and make some money on, you may need to get a little creative in how you come up with your down payment. People have looked to all sorts of alternative financing sources for their down payment arrangements. These have included credit cards, equity lines of credit, life insurance policies and more. At the end of the day, you need to research all of your other options and hunt down all other lines of inquiry, so to speak, before you opt for these very, very risky options. If you really think you are going to succeed, it may be worth it but you should do what you can to not have to get your financing that way.

Commercial real estate investing can be very lucrative. Commercial real estate is a lot different from residential real estate so you will need to do all of your homework before you take the plunge.

The Search for Your Dream Home Could Also Turn Up Your Dream Job

    Finance Tips

Investment property mortgage lenders

When you think about buying your dream home, you probably don’t think about a fixer upper. You probably envision rolling up to view the home and at first sight, sighing that content sigh that means your heart has found where it belongs. Whether it has the signature white picket fence, or it is in the perfect location near your job, your kids’ school, or near nothing but the shores of a lake and a forest trail, this dream home just has it all. However the reality for most people, particularly because everyone has vastly varied tastes, is that you are not going to stumble upon that absolutely perfect abode. And if you are going to put in a little work to make it yours, you may be wise to consider renovation financing.

How renovation financing can make your dream a reality

Renovation financing refers to the process of getting a loan for your home that includes the amount that you will be spending on the work that you will be putting in to make it exactly how you want it. Renovation lending typically requires that you show proof of the cost of the redesigning, so if you go this route be sure to keep careful track of all of your billing information and receipts. Sometimes it is even helpful to keep careful track of all emails and other communication with vendors or those you employ to help you renovate the property. Keep in mind that you will be facing quite a bit of work before you are finally presented with the home that you have been dreaming of, and many times that are unforeseen snags that slow the work up a bit. Patience is definitely key throughout this process. But with that end goal in mind, the work and time that you put in become totally worth it.

Renovation financing for the purpose of flipping houses
Perhaps once you have seen the process for yourself as you tried out renovation lending on your own home, you will realize that there is a way for you to make some money in this game. You will have the experience of having gone through the steps already, and if you happen to be working with a specific client and their wishes, you will be able to relate to him or her as the future owner attempting to understand the process. Another benefit of going this route is the fact that you already have the contact information and connection with many different vendors and contractors that you can continue to build a steady work relationship with for future projects as well. Real estate investment lenders will be more likely to grant you the loan you are looking for as you start to build up a reliable and trustworthy reputation as a borrower, and eventually you will have a booming business on your hands.

Sealing the deal with investment mortgage lenders
As investment property mortgage lenders begin to see your process and history of successful borrowing and repayment, it will become easier over time to get the loans that you need in order to flip the new houses and properties that you find. And as you become more experienced in the process overall, there are going to be aspects of it that you will look back on and wonder how any part of it was ever confusing or difficult to figure out. With repetition comes familiarity, and as you grow increasingly familiar with your growing business over time, you will become more and more successful. And who knows, perhaps you will eventually reach the point where you won’t be needing a loan at all, because your house flipping skills have grown and developed to such a great extent.