When it comes to buying a real estate investment property, the first deal is the hardest. Many talk about buying a rental property for several years until they finally take the initiative, by finding a property, and buying it. Many times the houses appreciate substantially…leaving people to wish they had bought ten more! However, financing your first investment property can be daunting, especially in Arizona.
So if concerns about financing your first property are stopping you from getting started, here are some other tips to ease your mind.
Check your credit early for mistakes and items you may need to address, but don’t let less-than-perfect credit stop you from trying to get pre-approved for a Mortgage from Arizona Hard Money lenders. You may be surprised by what Hard Money Lenders of Arizona will approve these days.
Once you review your credit report, do not take any drastic action without first consulting with an expert. In particular, don’t close old accounts or pay off collection accounts right before trying to get a Mortgage. Either action may hurt your credit score rather than help it. Also, don’t procrastinate any longer: lenders are being scrutinized for making risky Mortgages, and standards are likely to get tougher in the near future.
If you are not eligible for a Mortgage based on your credit or other qualifications, look for an investor partner to go in on the property with you. There are many others out there wishing they owned more real estate who lack the time and/or expertise to find and buy property.
Although hard money lender’s interest rates are high, it can be worth it if you can refinance or sell the property in a relatively short period of time.