Many new real estate investors are unaware of their options for borrowing. But exploring these seven options will allow borrowers much more flexibility when securing Arizona Rental Property Loans.
As a new or prospective real estate investor, you might not have any idea that there are over half a dozen options for you to consider when you are seeking Arizona Rental Property Loans. But for the savvy investor, there are a lot of options besides the standard conventional mortgage from a traditional bank or mortgage company. Which is very good because banks often have very stringent criteria for lending’ which makes it difficult to get a bank loan for an investment property.
A fix and flip loan is a short term loan that is often used for an investment property. These loans are not as difficult to secure as a traditional mortgage because the property is used to secure the loan. But the lender does still look at the borrower’s credit score to determine if the borrower will qualify for the loan. Arizona Private Money Lenders are another resource that is very similar to the fix and flip loan. These are people who make loans based on the value of the real estate being purchased rather than the borrower’s credit score. These are also short term loans, but they are much easier to qualify for.
Seller financing is another great option for Arizona Rental Property Loans. In this case, the buyer is making an agreement with the seller to make monthly payments on the property. The terms of the contract are similar to a traditional loan, but a loan from a seller can be more flexible with some of the terms. If the seller is not interested in providing financing then you might also want to consider a real estate partnership. In this case, you can determine who to partner with, and what that person’s contribution will be. Some partners only provide cash and remain silent regarding the function of the business, while others are actively involved in the investment business.
If you own a home then you also have the option to finance a loan to yourself. In this process, you would secure a home equity loan against your personal home or a home equity line of credit. This is like getting either a second mortgage on your home to use the equity or a new mortgage if your home is paid off. Finally, many 401K accounts are structured to allow you to take out a loan against your retirement savings. If you have a 401K that offers this feature, then that is the perfect way to finance a rental property as you are paying the interest to yourself as you pay back the loan.
As a real estate investor, the only priority that you have is to get the best deal possible on a loan so that you increase your profits. No one type of loan is perfect or will fit every borrower’s needs. Investing time in research will pay off when it comes time to calculate your return on investment so that you can make an additional purchase and grow your business.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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