If you invest in real estate, you probably already know that you have a number of different options when it comes to financing. These include but are not limited to portfolio lenders, home equity loans, commercial loans, conventional mortgages, owner financing, hard money, and more. Utilizing these options are often an important key to the success or failure of a deal. One option that is often overlooked is real estate lines of credit. It doesn’t matter whether you invest in commercial real estate, apartments, single-family homes, or others, a real estate line of credit can be enormously helpful in giving you real cash when you need it.
Lenders view rental properties as riskier investments than primary residences, so the requirements tend to be stricter, and the interest rates are usually higher.1 Here are five things you need to know about getting a loan for your rental investment property.
Building solid business credit is a wise goal for any business owner — including real estate investors. Good business credit comes with a lot of perks. First and foremost, it may help you qualify for commercial loans in your company’s name (often at decent interest rates).