Seckintube

Real estate investors today who are buying property to fix up and resell need to understand that the single most important part of your business should be attracting private money lenders. Investors typically look for investment property mortgage companies first but there is a better source for funding your real estate deals.

When looking for property there are three types of financing available to a real estate investor. There is conventional financing which is typically based on a loan to value and the condition of the house, there is hard money lending which is collateral based but expensive and finally there is cash or private money lenders.

Having access to hard money lenders or investment property mortgage companies is good for investors, however, these types of funds are not as readily available as cash or private money lender funds would be. These investment property mortgage companies are known for lending with very low loan to values and require the investor to come the to table with 10s of thousand of dollars to close. You won’t be able to purchase multiple properties or leverage your funds having to do this. Private money lenders are your best source for funding real estate deals because the terms are flexible.

There are 3 things that a lender will look at when making a loan for an investment property mortgage. First, the after repair value. Secondly, the lender will want to know the amount of repairs needed, and finally the lender will loan a certain loan to value based on the after repair vlaue or cash flow from the proprety. Investment property mortgage companies will not loan money until all of the items are addressed.

I would highly encourage anyone looking for an investment property mortgage to research their options and realize that by utilizing private money lenders you can purchase more houses. Investment property mortgages can be good for the right deal but private money is the best source of funds, just check out the tips on investment property mortgages at http://www.attractprivatemoney.com .

Learn more about investment property mortgage sources. Stop by Travis Bontrager’s site where you can find out all about private money and investment property mortgages and what they can do for you.