Financing Hacks to Buy Your First Investment Property in Northern Kentucky

Ready to buy your first investment property in Northern Kentucky? For first-time investors, financing is often holding them back from getting started. The problem is, time is money, and each year that passes lowers your potential lifetime returns, and it takes a pretty penny to make a pretty penny on real estate investments. There are alternative funding sources available, which will allow you to move forward with a purchase now, other than a conventional mortgage. By taking the time to learn about all of your financing options, you will have the ability to take advantage of each when they best suit your real estate investment needs. Read on to learn about these financing hacks to buy your first investment property in Northern Kentucky.

Buy Your First Investment Property- house

Hard Money

Hard money is usually a private loan from an individual or investors, typically for 12 months, that will allow you to buy your first investment property in Northern Kentucky based on the property’s after repair value (ARV) rather than your personal information. These lenders typically charge an origination fee of two points.  Because this is a form of asset-based financing, these lenders are not at all concerned about your ability to repay the loan because they will take possession should you fail to repay them. The profits for this type of lender come from the high-interest payments you made and selling the property. Because you are not going through the conventional approval process, hard money lenders can quickly make these loans.

Soft Money

On the flip side, banks offer soft money loans, which are longer-term loans with lower interest. Qualifying requirements for these loans are less stringent than hard money. These loans are the most often used way that that investors finance rental properties. Soft money loans are based, for the most part, on your credit history. These lenders do also consider your ability to repay the loan and DTI. Essentially a combination of both conventional loans based on credit history, along with the asset-based aspect of hard money loans, soft money loans are a great financing hack to buy an investment property in Northern Kentucky.

Partnerships

Another hack to buy your first investment property in Northern Kentucky is working with a partner as your source of financing. A credit partnership is a simple way to team up, with you locating the deal and your credit partner has the credit for a loan to buy the property. Allowing you to cosign on the mortgage loan will help to build your credit. You then take out a lease at a higher sales price with the option to buy the house. You would then get a loan, buy the property yourself at the end of the lease option, and rent the property out for profits. Or, you could sell the property. The most important aspect of this partnership is to buy low in a great location. A bargain property usually involves making improvements, but the payoff is well worth the elbow grease.

Double Trouble

Whatever you do, don’t get in over your head using a financing hack to buy your first investment property in Northern Kentucky. Keep in mind that real estate investing is a long-term business. Careful research into your financing options, understanding both the pros and cons of each, before deciding which path to take. If you don’t feel confident, stop. Reach out to a trusted investor and run the investment deal and the financing option numbers by them so that you avoid costly financing mistakes.   

The professionals at We Buy NKY Houses know the ins and outs of financing hacks to help you buy your first investment property in Northern Kentucky. Why not get started right now? Send us a message or call We Buy NKY Houses at (859) 412-1940 today.

For First Time Property Investment We Buy NKY Houses is Your Guide!

Buying a home is one of the largest investments one can make! Choosing to buy a home that is more than you can afford may have a long-lasting effect that you may later come to regret. You may only come to realize that you are already biting off more than you can chew after the purchase is complete. If you have questions like: How do I buy my first investment property?
Is it better to buy an investment property first? Reach out to us! When you call our hotline, you’ll be connected with our real estate expert who will listen to the specifics of your situation before making recommendations and answering any questions you have.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

Get Started Now...

We buy houses in ANY CONDITION in Northern Kentucky and Cincinnati, OH. There are no commissions or fees and NO OBLIGATION whatsoever. Start below by giving us a bit of information about your property or call (859) 412-1940...
  • This field is for validation purposes and should be left unchanged.