If you’re one of the 7 million Americans currently looking for an investment property, chances are you’re also looking for a loan to finance that investment. Getting an investment property loan may seem daunting at first, but with Brass Financial Group, the process couldn’t be simpler. If you’d like to learn more about how to get an investment property loan, read our guide below.
Determine which type of property you want.
There are several types of investment properties. To determine which loan is best for you, you’ll first need to decide which kind of property you want:
Learn the local market and shop around.
Look for a house in an area where comparable homes sell quickly and hold their value. It’s also wise to select a house that will be easy for you to work on, both in terms of your skill level and your availability. A property with mainly cosmetic issues will be an easier flip and a property close to your home may make it easier to put in a few evenings of work during the week.
Run the numbers.
Once you’ve selected your potential property, you’ll want to make sure it’s a strong investment before getting an investment property loan. Experts recommend that you select a property that will get you at least a 10% return on your investment. To calculate your ROI, you’ll take your expected net income and divide it by the purchase price of the property. Check out our How to Buy an Investment Property guide for more details.
Getting an investment property loan.
At Brass Financial Group, we have financing options that can fit almost any investment. If you’re planning to flip a house, we have loans that cover up to 100% of the both the purchase and rehab costs. If you are looking for a rental property, we also have term loans for single family properties with between 1 and 4 units. Give our office a call at 609-800-FUND to learn more or get started with your application today!