When a Tooele Home Loan is More Than a Mortgage
There may come a time when a Tooele home loan is more than a mortgage. Or at least you may want it to be.
I’m talking about using your home loan as a tool to launch real estate related business.
With that in mind lets talk about some of the things that your mortgage can be used for other than just allowing you to take advantage of leverage and building wealth from the house you own and live in.
Here are some suggested things you may want to talk to a financial planner or investment adviser about. I don’t give investment advise & suggest that if anything here strikes a chord, you talk to a professional.
If you want help understanding mortgage loans in Tooele Utah you probably need the help of a good loan officer or mortgage broker.
Your local agent is the best resource for finding a lender that can and will tell you the truth.
You might think that since the lending business is so tightly regulated that all loans of a certain category would be the same, and all loan officers equal
Just like some real estate agents are better than others, so it is with loan officers.
Understanding How a Mortgage Loan Can Be a Productive Investment
Most people tend to think of a mortgage loan as a necessary evil, an expense that has to be managed. But under the right circumstances, your mortgage can become a smart investment – something that makes you money instead of costing you money. With a little bit of ingenuity and a lot of hard work, you can turn your mortgage into a money-making investment that will pay dividends for years to come.
So how do you turn your mortgage loan into a productive investment? Here’s what you need to know.
A Mortgage Can Help You Buy A New Rental Property
One of the simplest ways that a mortgage can become an investment that adds value to your portfolio is by using it to buy an income property. For a first-time investor, the simplest arrangement is to buy a single-family home and rent it out. And if you live in a college town, you’ll find no shortage of students looking for housing – meaning you’ll never have a hard time finding renters.
In order to make this work, you’ll need to first have enough money saved up for a down payment. You’ll also need to have your rental rates high enough to turn a profit, but not so high that you have difficulty finding renters. And finally, if it’s possible, you’ll want to consider turning the home’s basement into a secondary suite, allowing you to max out your rental income.
A Mortgage Can Give You A Home To Flip
The second major way that a mortgage can be a productive investment is by using it to flip a home. House flipping has become very popular in recent years thanks to a number of television programs like Flip This House – and although flipping a home can result in a major windfall, it’s not easy. In order to make a house flip work for you, you’ll need to carefully plan out the flip and ensure that you buy the right property at the right time.
Beginning flippers should usually start with an older bungalow. You’ll need a solid credit score to secure the mortgage, and ideally, you should make your down payment in cash. You’ll also want to ensure the home is in a good neighborhood – this will make it easier to sell the home when you’re done renovating.
A mortgage is often thought of as an expense, but if you plan on buying a rental property or flipping a home, it’s actually a very smart investment. There’s always risk involved, of course, but with the right mortgage and the right home, you’ll have no trouble turning a profit. Call your local Tooele UT mortgage professional for help in getting the right mortgage for your investment property or primary residents.
If you don’t know a mortgage lender to work with, give me a call, I know some good ones.
Call Berna Sloan 435-840-5029; I know lenders you can count on, and loan officers that know when a Tooele home loan is more than a mortgage.