Investment Property Financing and You

Obtaining investment property financing is no longer a big issue these days. However, it does require a great deal of effort, time and money to be successful in the investment property business.

For their own benefit and also to convince the financer, the investor needs to be clear about the reason for purchasing investment property, the amount required to be borrowed and for what period, the expected returns on the investment, can he or she afford it, etc. This helps in narrowing down the type of property that would suit the investor’s needs, identify the lender(s) who should be approached, consider all the tax angles as well as identifying which specialists or consultants need to be hired or referred to so as to get the job done smoothly and completely – ensuring that there are no hassles later on.

The primary objective of investment property financing is to ensure enough funds are available to purchase property that would generate income as well as profits through rentals and appreciation of value. The most common sources of such financing are the banks, lending and financial institutions, but there are an increasing number of private financers including venture capitalists who see this form of investment as a win – win situation, especially with the housing market slowly picking up all over the world, after being ravaged by the recent economic downturn. An investor having a good credit history and score, a proper investment plan and some collateral is sure to get the investment property financing required, sometimes even up to 100% of the value of the property.