When it comes to real estate investments, securing funding for investment property is often times the most stressful part. If you’re preparing to buy a new investment property, check out Brass Financial Group’s top tips to make the funding process run smoothly.
1. Shop Local
When you look to local institutions for funding for an investment property, you’ll usually find greater flexibility. The loan officers at a local institution aren’t required to adhere to national policies, and they’ll often have greater knowledge and interest in funding local projects.
2. Take Stock of Your Financial Position
No matter what type of investment you’d like to make, it makes good sense to review your current finances first. Ensure you’re in a strong position for future investments by doing the following:
- Checking your credit score
- Making payments on time
- Handling any credit discrepancies quickly
- Maintaining credit card balances that are less than 30% of your limit
If you’ve checked your credit and your score isn’t as high as you’d hoped, you can still secure funding for investment property. At Brass Financial Group, we don’t care about your credit score, your income level, or your employment status. That’s because our loans are asset-based. Learn more about our financing options.
3. Pick the Right Type of Loan
Because there are so many loan products on the market, knowing what’s available will help you secure funding for an investment property more easily.
- HELOC: You can use a home equity line of credit to finance your investment property if you already own a home. This type of loan will allow you to borrow up to 90% of your home’s equity for your project.
- Rental Loans: A rental loan is a great option for real estate investors looking to become landlords. Brass Financial Group’s rental loans can be used for purchasing properties that have between 1-4 units. And, these loans have rates between 4.99% and 9.9% with a 30-year amortization and up to 80% loan-to-value.
- Fix and Flip Loans: If being a landlord isn’t for you, a quick flip is a good way to turn a profit without a long-term investment. Our loans provide bridge financing for up to 12 months and can cover up to 100% of the purchase and repair costs.
- Hard Money Loans: Our hard money loans have an easy application process and provide up to 70% loan-to-value with rates between 9% – 14%.
Luckily, you don’t have to figure all of this out your own. Get in touch with one of our loan officers to discuss your options for funding for investment property.