Investment Property Loans
What is that old adage “Buy low and sell high”? Well there is gold in those hills boys and girls. The real estate market has been beaten down to a pulp. There are people running from the real estate market left and right. That could mean an opportunity in the making. Florida is a great example of a place where this opportunity is occurring. Here are some of the reasons this is trur:
1. Potential for high returns – The Florida real estate market has lost value in the recent months. This is not as result of any factors other than the economy. The underlying things that made Florida real estate so attractive are still there.
2. Demand for all real estate is down – This means there are deals to be found. One person’s loss is another person’s gain. People are willing to deal at this time.
3. People are still going to move to Florida – The things that have attracted people to Florida, weather, low cost of living etc are still there. People are still looking to Florida as a retirement and vacation destination.
So with all of this in mind how can you take advantage of this opportunity? If you have the cash then it is easy. Do your research, take your time and find the right property. There are also other options. Investment Property Loans are a viable option. If you have cash and do not need it for immediate income then you may want to leverage your dollars. Investment property loans can be a way to hold on to your dollars but multiply the effect.
First let’s discuss some basics of investment property loans. Interest rates are at all time lows. This can create an opportunity for someone looking for investment property loans. You can use these low rates on investment property loans to create a spread that can yield you a higher return using the investment property loan versus other investments. Remember the opportunity for higher returns can mean a higher possibility of loss. First do your homework on the terms of investment property loans. The terms of an investment property loans are going to be different from the terms of a conventional loan.
Still the historic drop in both rates and prices make this a perfect time to explore the possibilities of using investment property loans as a way to acquire multiple properties that as the market turns around will increase in value.
To use investment property loans to take advantage of this once in a lifetime opportunity you will need to have a few things. First you must have good credit. This is because right now banks have been burned. Investment property loans create a risk for banks at a time when they are hesitant to take on more risk. Second, you need to have a plan to pay back ant investment property loans. This will help your banker feel comfortable that you have thought through the process and are not just jumping into something blind. Then third you may need some collateral.
The bank may ask other questions in the process of your obtaining investment property loans. They may include background questions about yourself and your spouse, what your current financial situation is and the potential investment property. Think these things through as you prepare to apply for investment property loans.
Investment Property Loans
By Arnie Fontenot