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Financing
One of the single
most important elements of real estate investing is financing.
It is not enough to buy right, it is absolutely imperative to finance
your acquisition properly. There are many different types of financing.
Just as no two deals are alike, the same can be said for the type of financing
that you use on each deal.
Generally speaking,
we recommend financing 100% of your acquisition. Whether this is feasible
for you is usually determined by your credit score, of course; however,
the link is not always so direct. In some cases you may be able to obtain
100% financing regardless of your credit, and in other cases even if you
have great credit you may not be able to finance 100% of your purchase.
Often
times some of our clients may be interested in entering into a joint
venture or partnership. If this comes in the form of an all cash
investment then your credit score would not be an issue at all.
This type of financing is commonly known as hard money, where the
only requirements are the numbers on the deal. These include: the
purchase price vs. the after repair value of the property, the cost
of renovations, the market time to sell the property, and of course,
a sound exit strategy.
The most typical
type of financing, however, would be the various mortgage products
that work very well for real estate investors. Typically 90% LTV,
95% LTV, 97% LTV, and 100% LTV with no prepayment penalties or seasoning
issues are the vehicles of choice.
These types
of mortgage products are available to Graywolf clients through special
lenders. If you feel that one of these mortgage products is right
for you, contact us via e-mail.
Graywolf
Consulting, Inc.
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