Are you an investor looking to take advantage of today's housing market?
Real estate investing is not a major venture to undertake for the average person, but it can be dangerous without the proper tools, if its success you looking for.
The best of tools which would go along way in assuring your success in real estate investing, other than financial capital is information. The adage,' knowledge is power' holds a lot of truth when it comes to knowing when, what and how to invest in real estate. Having and using the right information will keep you even when the property markets are experiencing tough times. You can even beat the recession and achieve your wildest dreams.
With that said, in recent days, a new wrinkle has come into the market that is catching investors and the Realtors they rely on for information off guard (heck, even many loan officers). MANY INVESTORS BUY PROPERTY with CASH. Shortly thereafter, and usually after repairing the home, they look to get a standard loan to replace the money they spend on down payment and repair costs
75% LOAN-TO-VALUE on INVESTMENT PROPERTY is now pretty much the rule of the land when using standard Fannie Mae and Freddie Mac financing TO TAKE CASH OUT as lenders everywhere continue to tighten, rather that loosen underwriting guidlines.
Thats right, CASH OUT is 75% loan-to-value on investment property.
So, while investment properties can be a great deal, having the correct information in the pre-purchase stages is very important.
So what about purchasing an investment property? 20% down is still king when buying.
As a real estate investor, I am always on the look for alternative ways to fund purchases. I agree that education is very important to success in real estate. I have not taken on partners in the past, but I can see advantages and disadvantages to this.
Knowledge of
How to find good investments
How to finance these investments
Where to sell investments that you are not going to hold