Investing in real estate can be a lucrative way to build wealth over time, but all loans are not created equal so to speak. If you’re considering taking out a loan for investment property, it’s important to understand what type of loan you need and to do your due diligence to make sure you’re setting yourself up for success. Here are some tips to keep in mind:
1. Educate yourself. There are several ways to invest in real estate so you will need to narrow it down keeping in mind how much time/money you have to invest. There is a limitless supply of blogs/videos online that can help as well as several organizations that offer hands on training.
2. Get your financial house in order. Real estate is a capital intensive business which will require you to invest your money as well as borrow money. Having a good credit score and understanding the different types of loans is key to being successful.
3. Location is key. The old real estate adage “location, location, location” is just as true today as it ever was. When choosing a property to invest in, pay close attention to the neighborhood, schools and surrounding area. Look for areas that are growing and have a high demand for housing, as this will increase the likelihood of finding renters or buyers. Driving the area in the evenings can give you an even better feel for the neighborhood and who resides there.
4. Keep features in check and don’t get emotionally tied to the property. While it may be tempting to invest in a property with all the bells and whistles, it’s important to be realistic about what you can afford to maintain and what features are most important to potential renters or buyers. Focus on features that will attract renters or buyers without breaking the bank.
5. Build a track record. Your first investment property probably won’t be your last, so it’s important to develop a good track record with your lender. Make sure you’re making timely payments and keep up with maintenance and repairs. This will help you secure future loans and tenants for your next investment property.
Let Noble Mortgage Help With Your Loan for Investment Property
If you’re ready to take the next step in your real estate investing journey, Noble Mortgage and Investments can help. We offer a variety of real estate loans to help you achieve your goals, whether you’re looking to flip a property or invest in rental real estate. Contact us today to learn more and get pre-qualified for a loan for investment property.
5 Tips for Getting Started investing in Investment Real Estate
Noble Mortgage & Investments LLC