Housing and real estate investments are starting to show some small signs of improvement over the last few months, and have been recording positive feedback even though inflation levels are still.
Check out Dean Graziosi’s e-Books >>>
http://www.amazon.com/Dean-Graziosi/e/B002G0AYAI
1. How to Finance Your Real Estate Investments
Housing and real estate investments are starting to show some small signs of
improvement over the last few months, and have been recording positive feedback
even though inflation levels are still.
If you are reading this, you are probably thinking or have decided to invest in real
estate. But, one of the most important question that you should answer before
diving into real estate is: “How do you finance your real estate investments and what
basic tips should you consider?”
In this article we will discuss some basic ways and tips for financing your
investments.
1. Determine first how far you are willing to go and what your capabilities are.
Do you plan to hold a one-man show and buy a few properties? Are you
willing to collaborate with someone else? This will be the first step of your
journey.
2. Secondly you’ll have to considerate that there are two types of real estate
finance resources: debt-based finance and equity-based finance each with its
own advantages and disadvantages. Debt-based finance is basically the
money you borrow from a third party/creditor with an agreement to pay it
back at a specific interest rate after a specified amount of time (e.g 30
years).Of course the drawback is that if you fail to pay, the creditor has the
right to take control of your property so make sure you have a steady sources
of income and good credit score before borrowing money. This is a very
important criteria set by the financial institution that will lend you money.
3. The other option as I mentioned above, is Equity based funding which has
gained an increasing popularity in Real Estate due to the fact that you aren’t
obligated to use your own money. Equity based funding is usually separated
2. into two sub-categories: Privately financed equity which involves the
participation of other venture capitalists such as private investors, business
associates, friends or relatives and Publicly financed equity which is to create
a cooperation and sell shares.
4. Use a more traditional method such as a home mortgage company, or credit
union. Credit unions are generally a cheaper alternative because of the free
membership, flexibility and lower interest rates than those of banks.
5. Hire a mortgage Broker. A good and reliable Mortgage Broker will be able to
research the current ups and downs of the local market you are willing to
invest and find the best and cheapest loan options for you. The good news is
that, you don’t have to pay him/her until the job is done (you found the
cheapest loan), so it’s a win-win situation.
Of course there are other funding resources like seller carry back and lease option
but before you choose a method you’ll have to examine all the possible gains and
risks involved. If you are still not sure, contact a real estate experts like Dean Crasiozi
to help you decide on your next step. Real estate investors like him who have made
their marks in the industry know the ins and outs of this business. Fortunately, Dean
is offering seminars and has written books about how to play the real estate game
wisely. The tips and lessons from his seminars can give you the advantage over other
investors, and hopefully, help you become more successful.
Check out Dean Graziosi’s e-Books >>>
http://www.amazon.com/Dean-Graziosi/e/B002G0AYAI