Investing in GA real estate takes capital.
It is common for first-time investors to invest their own money first. After purchasing a few free-and-clear properties, most people run out of their own capital… This means they either have to stop buying real estate or figure out a way to buy more property without using their own money.
Throughout this post, we will share a number of ways you can finance your next investment property.
How to get investment property financing in Savannah GA…
To buy an investment property in Savannah, you can obtain money in a number of ways. Here are some of the options:
1. Private Lending
One way to finance your real estate investment in Savannah is to use a private lender.
The private lending process involves another investor loaning you their money. Paying back a private lender is no different than paying back a bank, except private lenders may not always consider your credit score; they may be more concerned about the investment itself and will determine how much to lend you and what interest rate to charge based on their evaluation of the property.
You win by getting the money to do deals; the private lender wins because they want to invest in real estate and have the money but do not have the time or desire to do it themselves.
We can connect you with investors who need money for their real estate deals if you are a private lender looking to invest without having to do the work yourself. Be sure to call us at (912) 421-9907 if you’d like to get involved.
2. Traditional Banks and Lending Institutions
Taking out a loan from a bank or lending institution can help you finance your next investment. This is a great way to obtain more properties if you have good credit and are able to put down a decent down payment.
If you want to demonstrate a history of good credit management, you’ll need to make sure that your credit score is good. So, pay off your debts regularly and on time so your score is good. By building up your credit, you will be able to borrow money from financial institutions and acquire properties.
Eventually, however, your debt-to-income ratio may exceed a bank’s willingness to lend to you once you own a certain number of properties. Then it’s time to look for alternative sources of funding for your real estate investments.
When investing in real estate, one very clever way to finance the deal is to borrow against your existing investments, then use that money to buy new investments.
As an example, if you own some properties and they have some equity in them, why not borrow against them (by refinancing them or by taking out a home equity line of credit) and use that money to purchase more properties. This is what leverage can do for your investments!
However, you must be careful that your debt servicing payments do not exceed your income from new acquisitions. Still, there are investors who build up a large portfolio just with their own credit and this self-financing strategy!
4. Seller Financing
You can also finance real estate investments by using seller financing. It has become a bit more difficult with new federal regulations but it can be done.
In seller financing, you work with the seller themselves, which means they’ll sell you the property, although they don’t give you a lump sum. Instead, they allow you to pay until the property is completely paid off.
“Newbie investors” are sometimes surprised that such a method exists, but sellers prefer it since they get a cash flow without the headaches of owning a property (plus their risk is mitigated because if you default on payment, the property reverts back to them). A win-win deal for both parties.
How will you finance your next Savannah real estate investment?
Which option will you choose for your next real estate investment? Choose from these four powerful financing strategies and mix and match them to get the best results!
To get started, just click the link below and fill out the short form if you’re interested in investing and need deals or money to do so. Let’s start building your portfolio together!