Investing in real estate can be a great way to generate passive income and build wealth. But before you can start collecting rent, there’s one big hurdle to overcome: financing. Every real estate investor needs to familiarize themselves with the financing options available to them so they can choose the right strategy for their goals. In this blog post, we’ll explore both conventional and alternative strategies for financing your investments and how to use them strategically.
Types of financing for real estate investors
There are a number of financing options available to real estate investors, each with its own set of benefits and drawbacks. The most common types of financing are conventional loans, which are typically obtained through banks or other financial institutions, and alternative financing, which can come from private lenders, hard money lenders, or other sources.
Conventional loans tend to be the most popular option for investors because they offer lower interest rates and longer repayment terms than alternative financing options. However, they also generally require a higher down payment and have stricter eligibility requirements. (more…)