When my husband and I decided to get into the real estate industry we weren’t as prepared as we thought. We had the proper credit and a little cash on hand however the loan process and price of the rental home took us by surprise. The house we purchased was inspected, but once we got in we saw it needed even more work if we were going to use it as a rental property. We needed a loan right away, but we saw that we were losing money while waiting to get in a position to receive help. When you’re seeking a loan or financing you are really asking for immediate assistance, enough funds, and a realistic payoff schedule.
Immediate Assistance
As an investor, you are constantly moving money around and when it comes to loans you actually apply for it’s important to gain access to those funds right away. One option we looked into was a fix and flip credit line Chicago il. We needed funds that would arrive fast and be reliable and we aimed to go with a reputable company that was experienced in the type of financing we needed. The great thing about the company we chose is they offer a variety of loan options including revolving credit and renovation financing. This lender made us feel well taken care of.
Enough Funds
One thing to consider when you’re going to apply for a rental loan is how many rentals you really need help on. There’s a way to get a rental portfolio loan so you can properly manage all of your properties. My husband and I just needed a single asset rental loan. We made sure to only request what we really needed for financing. The turnaround time was so fast from approval to actually receiving the funds, it was really nice.
Realistic Payoff Schedule
Anytime you’re looking into financing one of the big questions you have to ask yourself is am I giving myself enough time to pay back this loan. We tend to bite off way more than we can chew and we spend years struggling because we’ve committed to paying something off in a short time. Think about the long game. I know there’s an interest rate and you want to save as much money as possible, we’ve been there. Sometimes it’s better to just negotiate a lower price or interest rate up front. You can still double or triple up on the payments as long as there’s no early payoff penalty.
Conclusion
Don’t be a poor landlord just to say you own a rental property. Invest in your property. Take the time to spruce it up and be proud of what potential tenants will see and then pay for. Our standards are if we wouldn’t live in it we wouldn’t ask anyone else to. We make sure our tenants have a minimum of a spotless place with all working fixtures. Since we dump so much money into our properties we keep an organized log of all equipment, renovations, and replacements. If you can’t drop a bunch of money on your property without getting a loan first, make sure you think about these factors during your loan search: immediate assistance, enough funds, and a realistic payoff schedule.
