To Buy Or Not To Buy? The Best Ways To Finance A Property

by Mike on June 20, 2017

To Buy Or Not To Buy? The Best Ways To Finance A Property

Investing in real estate is a winner. It doesn’t matter whether you want to flip it and make money or turn it into your dream home because both options are realistic. But, before this dream can become a reality, a buyer needs the money to invest. And, real estate does not come cheap.

Running to the bank to ask for a mortgage may appear like the only option, but that isn’t the case. As it happens, there are several ways to finance a property, and you can find them underneath.

Housing Loan

A housing loan and a mortgage do have a lot of similarities. For one thing, they are both used primarily to purchase real estate. As a result, they are also substantial loans which include various terms and conditions. The one big difference, though, is that a loan for a house is easier to come across than a mortgage. Banks are pretty stingy nowadays, especially since the market crash in 2008. So, the people in charge are turning more people down than ever before. On the other hand, a house loan is available from a variety of private lenders.

Family Loan

Now, the idea of your family having this type of money may play with your mind. But, the truth is that no one knows how much a person has in their bank account until they ask. Although the odds are slim, it is possible for a family member to be able to afford such an investment. Even if they can’t lend you the total amount, they may be willing to give you a hefty chunk. Then, there is no need to borrow as much from lenders and accrue substantial quantities of interest. All you can do is ask and wait for a reply.

Angel Investor

For obvious reasons, an investor won’t buy a house for you and let you move in for the foreseeable future. Any savvy entrepreneur will want to see a return on their investment, which is why they aren’t in the residential game. However, if your plan is to flip it for a profit, an angel is a practical solution. As long as you can show the potential of the investment, there’s a good chance they will part with their cash. It isn’t as easy as presenting a slideshow, so don’t get excited. Still, a quality pitch will go a long way if aimed at the right people.

Positive Equity

There is a good chance that your belongings have positive equity. A home is the best example, but it isn’t the only option. A car may also have untapped value. The good news is that you can use the equity to secure a cash advance. Lenders such as banks are more than happy to pay out in exchange for ownership. Some people think it’s a silly idea, yet every situation is different. If the money is the difference between making a killing and stagnating, there is only one option.
Thanks to these tips, the question to buy or not to buy should become a whole lot simpler.

 

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