3 Ways to Find Loans for Rental Property

[Corey Dutton]

For real estate investors seeking ‘buy and hold’ investment opportunities, financing is always a conundrum. So how does an investor find loans for rental property? Because there are so many avenues and options, an investor in rentals must make 3 important considerations when seeking financing:

1. What type of financing can you qualify for? Is your income and credit up to par to qualify for a bank loan? Or do you need to seek out other alternatives for financing such private money, hard money loans. Take time to find out what you can qualify for before you go too far down any road. Try to discover every, possible option for financing and put every option on the table.
2. Is a private money or hard money loan an option for you? If your credit is not up to par, or you have self-employment income, you may not qualify for bank financing. This may make you a candidate for hard money financing, since most hard money lenders typically don’t worry about credit or income, but more about the property itself that is being used as collateral for the loan.
3. Are you seeking a short-term solution or permanent financing? If you are just looking for a short-term, bridge loan to purchase a rental property, this is very different from a long-term, permanent type of loan for a rental property. Research the various options once you know what your goal is for the financing.

Whether you’re seeking a bank loan, a hard money loan, or some other form of loans for your rental property, start with the 3 considerations above. What else would you add to this discussion? Please share.