How to Get Real Estate Investment Financing?
Example 1:
To get real estate investment financing for your deals, one of the first steps
you absolutely NEED to take is to add at least one proven Mortgage Broker to
your investing business' Power Team.
Having someone who has demonstrated great capability to source real estate
loans and even dabble in some creative real estate financing on investment
property from time to time is essential.
Pretty easy step, right?
The key here is to locate a GREAT Mortgage Broker (not just a good one), by checking out their track record. If they're well known, they may be
too busy to take on new clients (eg. you!)...this is one of the key members on your team that can help make your dreams come true by saving money, and making sure
the financing is there when it needs to be.
Recap 1:
Select a great mortgage
broker that deals primarily with investors
FYI...it's not as difficult as you may think. After doing a bit of
homework, you'll likely find a few mortgage brokers in your market offer the ability to buy a
property below market, and they'll provide the funds for the rehab work!
That means, if you buy a foreclosed property for $100K when
it's worth $200K, and it only needs $30K in fixup work,
they'll loan you the entire amount (home mortgage plus fixup costs) all in one loan.
Then, you could resell the property when repairs are completed
to a home buyer for $170K and get THEM in on a good deal,
we make $40K profit, and even set the new home buyer up with our mortgage broker who will appreciate the repeat
business that they're getting from the same property.
When selecting mortgage brokers, understand what type of
lending programs they have available to facilitate
the types of deals you're going to do.
Example #2:
One type of investment strategy is called "pre-construction investing".
With this strategy, a real estate investor contracts a
piece of land, and gets a builder to construct a home.
In this case they would need a loan for the land purchase, and
then a loan for the house.
Unfortunately, They'd pay closing costs
twice!
But all is not lost. In certain areas of the country that are experiencing
above-average appreciation, there are lenders who will bundle:
- the price of the lot
- construction price of the home
- PLUS the closing costs,
...all into one loan…
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Even better, typically you don't have to make any payments on the mortgage until
the house has been completed a Certificate of Occupancy by the city!
(at which point, I'd hope you've already sold the house at a profit to a new home buyer and gotten them in on a deal too without making a single mortgage payment!).
Regardless, these are just two of the many ways to obtain creative real estate investment financing loans for your property deals.
(at which point, I'd hope you've already sold the house at a profit to a new home buyer and gotten them in on a deal too without making a single mortgage payment!).
Regardless, these are just two of the many ways to obtain creative real estate investment financing loans for your property deals.