What To Do To Successfully Finance Investment Properties

By
Real Estate Broker/Owner with Homes By Cross, Inc.

What To Do To Successfully Finance Investment Properties in CharlotteWhat To Do To Successfully Finance Investment Properties

You have your house for sale in Ballantyne completely paid off and now you’re looking to make extra income. Purchasing investment property is an excellent choice and produces a steady stream of income for years to come! Read this article to learn what to do to successfully finance investment properties and live the plush lifestyle you’ve always dreamed of!

Have a Large Down Payment On Hand

Investment properties are for financially well established families. Mortgage insurance will not cover investment properties, so it is a must to have at least 20 percent down.

If you can manage 25 percent down, your interest rates could be significantly lower depending on the borrower you choose for a home for sale in South Charlotte.

Stellar Borrowers Win

Two primary factors equate to a stellar borrower. The first is your credit score. To get the best interest rate possible, you generally want a credit score greater than 740.

The second factor is your cash reserves. Lenders for investment properties are looking for candidates that have at least 6 months worth of funds to cover both personal and investment expenses. They want to make certain that you can financially handle a circumstance where your properties are vacant for a period of time.

Avoid the Big Banks

If your down payment isn’t as much as you would like it to be, check out your neighborhood bank instead of the nationally recognized banks scattered throughout the Queen City. Local banks tend to know your specific market much better. Additionally, they are usually more flexible when it comes to financing a South Charlotte house for sale.

Creative Thinking Works

Finally, think creatively and consider using a home equity line of credit to secure a down payment. Depending on your specific circumstances, this can be an excellent option.

Do you have any personal tips on what to do to successfully finance investment properties? We would love to hear about your investment journey!

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Topic:
Lending / Financial
Location:
North Carolina Mecklenburg County Charlotte South Charlotte
Groups:
North Carolina Real Estate
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Charlotte North Carolina Area
Tags:
real estate investment
charlotte homes for sale
property investment
home investment
mortgage and finance
ballantyne homes for sale
south charlotte homes for sale
lending tips
charlotte retirees

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Claude Cross

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