What is an Investment Property Loan?
Many businesses choose to invest in real estate properties. Most often, a loan is taken to finance these investments, these loans are called investment property loans. Sometimes, these loans are called bridge loans.
Usually, these investments are made to generate income by renting the property or by re-selling it after a period of time. Investment property loans are usually taken for a short time period. Investment properties can be either commercial or residential, but they can’t be the primary residence of the investor.
How do Investment Property loans work?
In investment property loans, the investment property acts as the collateral. The loan can be used for the acquisition of new property, the renovation of a property, or both. The loan is sanctioned based on the valuation of the property. Investment property loans are generally financed at 60-80% of the property value.
Benefits of Investment Property Loans
1) Flexibility: Investment property loans give investors budget flexibility when purchasing a property. With this freedom, investors can choose the type and size of property that will be most profitable.
2) Finance Multiple Properties: The biggest constraint when buying a property is often finance. With an investment property loan, you may be able to invest in multiple properties at once.
3) Reasonable Interest Rate: Those looking to finance an income property are looking for the best interest rate. Investment property loans are a great option for those with a good credit score.
If you are looking for an investment property loan in New York, New Jersey, or Connecticut, we can help. Give us a call to discuss your options: (646) 629 6490.