Financing your investment property is an important decision, and knowing the best options for your investing goals is key to having profitable assets. These are three popular financing options:
Traditional Loans –
While often referred to as agency loans or traditional loans, these loans offer very competitive rates and are a great choice for investors looking to purchase less than 10 investment properties in their own name. The requirements for these types of loans vary from person to person and lending institution. See the full list of required documents on our website to find out what you’ll need to qualify for this type of loan.
Private Loans –
Private Loans for SFR investments are ideal for investors looking to purchase any number of investment properties. These loans are typically used for investors that don’t qualify for agency loans, foreign nationals, and those who want to buy using an LLC.
Within commercial residential loans are several loan options including blanket and portfolio loans. Depending on your financial goals, multiple commercial residential loans can be used together to create a unique investing strategy. Portfolio loans have a different set of requirements than agency loans and are often issued based on the assets’ performance rather than the investor’s individual credit.
Additional Methods –
In addition to the methods listed above, many investors might not be aware that they can fund their single family investment properties through the use of a Self Directed IRA. Owning rental properties within this entity provides diversification to your retirement portfolio and can also provide a hedge against inflation.
For more information regarding investment opportunities in the Austin & surrounding areas, please contact us. We can provide you with market data and investment worksheets to calculate RIO/CAP rates & more.