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So You Want to be a Landlord? Finance it...
So you want to be a landlord? Finance it...
See the other posts in this series:
                So You Want to be a Landlord? Pick a Niche...
                So You Want to be a Landlord? Analyzing Potential Properties...
 
OK...so now you've picked your property niche and analyzed potential properties. Your analysis has told you which property to buy...now comes the hard part... financing it.
 
It didn't use to be the hard part...but after a couple years of out of control foreclosures and government ownership of banks... financing for investors is hard to come by.  But there are still options..
Private Financing
One industry that has done well as banks have stopped lending- is the private equity industry. Many companies have realized there is an unfilled need in the marketplace and have started lending to cash starved investors. Expect large downpayments, 20-30% and higher rates.
 
Owner Financing
Many owners are in a position to finance the sale. Owner financing can take many forms.
Lease Options allow you to rent the property with the option to buy while you sub-rent the property. This is commonly known as a sandwich lease.
Installment Sales, also known as Land Contract or Contract ... more

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