Pay For Your Property with Cash
Depending on how much capital you have on hand and available for your investing needs, you may be able to purchase a property with all cash. This option is usually something experienced investors will do if a property is available for a smaller investment or if they are confident in the ability to quickly turn a profit from that investment. It’s certainly not always an option – especially for those new to investing – so don’t feel worried if you’re trying to get into home investing and don’t have cash on hand. You have other options to get started.
Obtain a Mortgage Through a Bank
A traditional loan where you mortgage property through a bank, like a homeowner, would do for their new home purchase, is also an option. It’s not the ideal option if your goal is to fix and flip or to offload the property quickly. But if you plan to fix it up and rent it out, this could be an option to go with. Be sure you weigh the pros and cons if you will be going this route, though. Mortgage interest can add up quickly and an inability to keep the rentals filled can set you back.
Get a Hard Money Loan
This is a final option and arguably the best option when you need money quickly for purchase. These types of properties tend to sell quickly and taking the time waiting on traditional loan approvals can mean losing out on the deal.
Remember if you’re investing in real estate and looking to turn profits, hard money loans may be the best way to go. The funds are based on collateral; therefore, there is less emphasis on credit history. Hard money loans are also a great option because they can help bridge the gap between getting some money to purchase the property and then securing the longer-term financing you may need.
Sachem Capital is here to help you navigate through the complexities and uncertainties associated with borrowing money. Contact us today!