When the sweetest of deals fall into our laps unannounced,
should you pass it up? Definitely not, however, if you are
finding low levels of financial resources, you may have to
get a little creative in terms of financing. When you are
looking to finance your investment property creatively, you
have come to the right place. Here you will discover different
and creative methods of financing your deals. If you do not
want to use these methods, they will definitely get the
creative juices flowing, at the very least.
Need a loan? Consider No Doc or Low Doc
These are perfect for those who have little documentation
that proves the extent of your income or creditworthiness.
Furthermore, it is particularly beneficial to those that
work at home. A no doc or low doc loan works exactly as
it sounds. Depending on the specific type, you will either
be required to present very little documentation or none at
all. There is a downside to these particular types of loans
however, you will probably only receive the loan for around
80% of the value or purchasing price of the investment
property.
A Friend in Need, is a Friend Indeed
Being creative in financial deals, means pulling all of your
resources together, this could mean talking to your friends.
Your friends may be the answer to all of your financial issues.
They could be looking for an investment property, just like
you, this could be a great solution for the both of you. You
should, however, ensure that your friend is someone you have
full trust in and know extremely well. How would it work? Well,
both of you would place money to go towards the down payment;
therefore, you both would have an investment property. Each of
you would also have a hold and say so in both the mortgage and
the title.
Family for Life
Family members are often an excellent resource when it comes
to financing an investment property. Many people really do not
want to go to there family and ask them to give you money. However,
you could take a different approach instead of asking them for a
gift or a handout consider asking for a loan. Much like a bank,
only these are your family members. You should always offer to
pay the loan back, within a specific period of time, at a
predetermined rate of interest.
Remember this is an investment for them as well, an investment
in you. Therefore, you should make the offer of paying back with
interest. It is highly likely as a family member, that they will
refuse the offer of interest and just want the initial sum paid
back, but you should never assume and always make the offer.
Summary:
What should you do when you have run out of financial resources,
but you have a sweet deal on the table for investment property?
Get creative!
Article written by Brooke Hayles.
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