Here are three investment real estate loans that you can use.
Seller Carry Back: This is a form of owner financing that gives you the space make payments in bits. The seller’s ownership of the property has to be free and clear for this form of financing. The seller accepts to receive a monthly payment on the property for a specified period of time from the buyer. The time period for full payment is typically set by the seller – normally between one and four years. Because it is easier for you to qualify for a refinance loan than a purchase loan this way of financing is just awesome.
Subject to: This is another great way to invest in real estate. This method is great for those who are not able to come up with a down payment immediately to qualify for the traditional mortgage loan. This method is mostly used by buyers when buying pre-foreclosure properties. The buyer simply buys the property while the existing financing terms are in place. The title to the property is transferred to the buyer but the loan remains in the seller’s name. You should uphold your end and make the payments in a timely manner.
Seller Second: This method allows you to own a property without coming up with the down payment. The seller here provides a second mortgage to cover for the down payment. The second loan can be large enough to cover most or all of the down payment. This method will give you the property without you using your money.
If you are determined to own a property, you will find a way to finance your investment.