There are thousands of people who are actively investing in real estate. The fact is, when you know what you are doing, you can make quite a bit of money. However, any seasoned real estate investors in NYC will tell you, one of the most difficult parts of the entire process is getting the financing you need for the property you want to purchase. Some of the options that are available to finance the purchases you want to make can be found here.
Traditional Loans
These are often referred to as agency loans and offer extremely competitive rates. They are a great option for investors who want to purchase fewer than investment properties in their name. These types of loans have specific requirements that vary from one lending institution to another. This is a great option for real estate investors in NYC who are new to this endeavor.
Private Loans
If you don’t qualify for an agency loan, or are a foreign national or want to purchase real estate using an LLC, then a private loan is the best option. Based on your financial goals, several commercial residential loans are able to be used with one another to create a unique investing plan. Another type of private loan is a portfolio loan, which has different requirements than agency loans and are usually based on the performance of the assets rather than the credit rating of investor.
Other Options
There are many investors who may not realize they can fund a single family investment property by using a Self-Directed IRA. When real estate investors in NYC use this option, they can achieve diversification to their retirement portfolio and provide a hedge against any inflation.
Investing in real estate is a great option for many people. Learning about the funding options is a good first step.
Learn more about investing in real estate by visiting the Avid Realty Partners website.
