Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to! Visit the Real Estate Investing Forums.

Real Estate Articles 
 Real Estate 
 Second Home
 Success Stories
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 Real Estate Investing 
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Colorado Springs
 Reno, NV
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 United Kingdom
 Real Estate Seminars
 Condo Hotel Investments
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 Income Properties
 Mortgage and Finance 
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online

Mortgage and Finance : Commercial Loans Last Updated: May 14th, 2012 - 22:24:01

Investment Property Financing: Things To Remember
Email this article
 Printer friendly page

If you are considering buying single-family homes, duplexes or condos, your strategy for Investment property financing plays a very important role in determining your success in the real estate industry. No matter, whether you are buying the property to rent out or to renovate and resell, you must follow a proper strategy for your investment property financing. Therefore, before, you go ahead, make sure that you have taken into considerations the following things. The keyword here is ‘information’. The more informed you are the better are the chances of your success. 

Rate of Interest
The very first thing that you need to consider regarding investment property financing is the rate of interest you need to pay on your mortgage loan. Keep in mind that you may have to pay at least 1.5 to 2.5 percent more in comparison to the interest rate for owner occupied mortgages. However, the interest rate in investment property financing depends upon many other things as well, such as your personal credit rating etc. The main reason for this higher interest rate in Investment property financing is that most lenders hesitate approving a loan for investment property. 

Down Payment
When it comes to investment property financing, it is not just the rate of interest, but keep in mind that you will also be required to pay a much larger down payment in comparison to the amount you need to pay in case of your own home. This down payment for your investment property financing can be as large as twenty percent of the total loan. 

Things that can Influence You
Remember, while you are trying to reach a decision regarding investment property financing, many outside factors may try to influence you, and you may end up taking a wrong decision, such as the devaluation of the dollar in the mind of the purchaser. The agents may also try to fool you by distracting your thought so that you may not fully appreciate the value of your investment, such as they may try to get up in your offer in 2 and 3 thousand increments. When it comes to investment property financing, you need to be very careful of such things because if you do not realize the true picture in time, you may have to repay your loan much longer than it really deserves. Always keep in mind that an addition of even a single thousand dollar can cost you too much when it is time for the repayment. After all, how can you forget that you have to pay back with interest? Therefore, if you want to have a good deal in Investment property financing, you cannot afford to let any such thing influence you. Keep your eyes open because at the end of the day, it is only your decision, which will determine how much and how long you have to repay your loan. 

Choosing Your Lender
When it comes to choosing the lender for your investment property financing, you have many options. However, one of the best options is choose the seller as finance your investment property. This will certainly cost you cheaper than other sources of finance. There are many reasons for that, such as they do not ask for any additional charge, they can easily approve your loan because they do not like to miss the opportunity to earn a high rate of interest on the mortgage, etc. This way, all you have to pay are interest only payments for your investment property financing. What is more, you save yourself from the hassle of convincing the lender about your repayment ability because as discussed above, banks and other lenders treat such a loan riskier and do not approve the same easily. However, private lenders are also a good alternative for Investment property financing. However choosing your seller as your lender for Investment property financing is certainly the best option. 

Loan Package
When it comes to get approval for your investment property financing, a loan package plays a very important role. Your loan package is the document that outlines the viability of the investment. It may include a rent survey of the locality around your property; information regarding comparable sales in the neighborhood, possible income and expenses, information regarding vacancy-rate of the area, and based on that how long your property may remain vacant etc. No matter who is your lender for investment property financing, it is always prudent to include such a loan package. Moreover, this loan package plays a crucial role when your lender is a bank. 

Hence, here we see, if you want to have the best deal in investment property financing, you must be well informed. The more educated you are the more are the chances for you to get a better deal. However, your experience does also matter because such skills come with experience only.


Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:


© Copyright 2001 - 2010 by            Page copy protected against web site content infringement by Copyscape   



Visit Real Estate Forums for every real estate investing topics!  Enter Here


Top of Page

Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    

Copyright © 2001 - 2010, All Rights Reserved. Privacy Policy in Observance.