3 Tips On How To Finance Investment Real Estate Even If Your Credit Isn't Perfect

By Jeff Kappel


If you've been asking yourself how to finance investment real estate you already know that buying investment real estate is a great way to diversify and add more value to your portfolio, providing you don't mess it up like most real estate investors do. Most people were shocked that real estate could lose value when you know what hit the fan a few years ago, but if you play your cards right real estate is a great asset to compliment any paper assets you may have.

They were caught completely unaware and many of these people didn't have an escape plan mapped out. Those people lost money in real estate as the values of homes went through a rapid depreciation and the housing market that had previously enjoyed far greater demand than supply was suddenly flooded with empty and/or foreclosed housing opportunities.

So now a lot of real estate investors ran into a big problems, which was figuring out how to finance investment real estate after the market got flooded and home values went down the toilet. What made it worse was that banks puckered up and made financing investment real estate even harder asking investors for bigger down payments and spotless credit to help lessen the risk. Talk about a sticky situation!

Picture being somewhere in the southeast, such as Florida where it was nearly impossible to find investors to buy homes because they were so timid and freaked out.

Picture this, if you didn't have at least 20% down and a credit score over 750 you very well might have been flat out screwed when it came to financing investment real estate. One internet source BankRate was quotes as saying "i don't know of any lenders who are doing second loans on investment residential, right now." That's pretty messed up isn't it?

However, if you're truly interested in how to invest real estate dollars for a true return on that investment then long term investment in these properties right now really is a really good plan. Real estate though is something of actual value. The return on real estate investment might not seem promising at the moment but looks are deceiving.

The honest likelihood is that prices will eventually rebound. When that happens, people who purchased investment properties at low prices will enjoy a rapid increase in their investments. This means that they'll suddenly have a wider range of options available to them.

If you have that little bit of a gambler side in you, which I think we all do to our own degree you don't always have to invest for the long run. You still have the ability to put together and package deals and heck if you have the capital you can become the go to person for figuring out how to finance investment real estate.

If you are good at shaking hands, having drinks, and working behind the scenes you can find your spot in the real estate investment world at the deal maker and let the rest of the investors figure out how to finance investment real estate. Clearly, this takes a special type of person so if this piques your interest and you can handle pressure better than most, look into this option.

You can read all the books in the world about how to invest in real estate but one of the best ways there is to get started is to become involved in real estate investors clubs in high-demand markets or to take a real estate investment class online.




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