Here is the thing. When you decide to buy property, be ready to spend significantly. Further, if you, a Raleigh property investor, have ready cash, you can get the property and cash flow right away. Only that, very few investors can afford such huge sums of money at short notice. Then, if you’ve identified a prime property and are constrained by cash, here are 4 top ways to solve this challenge.
1. Get a Homeowner’s Mortgage
Mention property financing and the traditional mortgage option comes to mind. Well, guess what? It is still as effective today as it was during the Great Depression. It is a go-to for most homebuyers since it spreads the repayments up to 30 years.
Homeowners can maintain large debt through affordable monthly repayments. Still, as local property investors, we advise opting for a mortgage with the shortest repayment period that you can manage. That way, you will be mortgage-free sooner and venture into bigger investments. Other benefits include:
2. Hard Money Loan
A property investor in Raleigh NC, may use their existing real property to secure their next home purchase. The hard money loan attracts high costs and an LTV ratio. In turn, this strategy comes as a last resort or as a short-term bridge loan.
3. Government Loans
Are you a Raleigh property investor seeking financing for your first home? Consider the government-backed VA or FHA loans. These are homeowner financing subsidized by the government. The Federal Direct Loans protect the lenders from default. Here are their attributes:
These loans are still applicable to your subsequent owner-occupied properties.
4. Private Lending
Apart from the mentioned strategies, local property investors still rely on their family members and friends for private loans. Here, there are flexible loan terms and interest rates. Plus, the borrowers build trust by repaying on time.
Contact Our Raleigh Property Management Company Today!
Are you a property investor in Raleigh NC, seeking appropriate funding for your next purchase? Come and learn about the options you have. Talk to us today.
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