Property Investing, is the most stable Wealth Creation strategy. As long as you invest in a desirable area, you’ll likely enjoy a return on your investment for years to come. When you purchase your Investment Property, you will want to keep these five smart strategies in mind.
1. Be the Ideal Borrower
To secure the funds necessary for purchasing your Investment Property, you will need to have a high credit score, unblemished borrowing record, and low debt-to-income ratio. In addition, your loan-to-value proportion will need to satisfy your lender’s requirements.
2. Have a Down Payment
Even if you hold a sparkling credit history, you will likely be asked to put a down payment of up to twenty percent towards your loan. Your lender’s requirements can depend on a number of factors, including the loan-to-value ratio.
3. Consider a Carry Over
Although it infrequently occurs, carry over financing can eliminate the need for a down payment. Essentially, you buy a property with the condition that the original financing is carried over. The loan remains in the original owner’s name while you are making payments. Then, you can get the loan placed in your name and/or refinanced.
4. Get Creative
Financing can be done in a number of ways, and sometimes we have to look for the right opportunity. Lines of credit can be used to furnish a down payment, such as from life insurance or credit cards. Another financing alternative is to obtain funds from peer-to-peer lenders.
5. Lease to Own
If financing a loan is not an option, leasing to own provides an excellent opportunity to invest in real estate. This alternative gives you the option to buy the property in the future, potentially with no down payment.
Property Investing is an opportunity to create a powerful stream of income. Although financing can become difficult, these five tips lend to a simpler property financing experience. Curious about Wealth Creation through Property Investing? Contact us today for more information.*extract from Custodian Millionaire Case Studies magazine printed in 2012.