From a recent post about loans for rental property, a real estate investor just starting out often asks, how do I get a loan for a rental property? The answer is simple: cast the net out wide and consider various options. Ask yourself a few questions before getting started:
- Do you understand all of the alternatives?
- Do you have a need for speed?
- Are you seeking a loan for more than one property?
It is not as straightforward as it seems to get a loan for rental property. There are many alternatives out there, and every one has different requirements.
Particularly when starting out, consult with other real estate investors who have financed their rental properties with success. Don’t rely on just traditional bank routes for real estate financing either, because there are many options to consider. Unfortunately this is uncharted territory for some real estate investors, and for this reason, loan scams are quite common in the financial services industry. Wasting time and money with these loan scams can result in a real estate investor losing a property. Without an in-depth knowledge of how real estate financing works, it’s best to consult with another experienced colleague in real estate regarding various alternatives. What else would you add to this discussion regarding how to get loans for rental property?
Thank you Corey for your post!
I am new to REI and currently facing the same challenge but have reached out to other successful investors that I know for their guidance and support.
I found just taking a seasoned investor out for coffee and/or lunch and picking up the tab goes a long way with getting plugged other ways to fund your deals than your traditional bank loans.
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