Before you finalize an investment loan, it is important to consider the factors that go along with securing a reliable and accommodating lender. Your initial step should be ensuring that your credit score is in good standing, while also analyzing your debt to income ratio. Your debt to income ratio tends to rise with every loan you apply for, so knowing each lender’s terms before applying is imperative. If you’d rather go through a more unconventional route, you can seek out a private lender such as a neighbor, co-worker, or family friend.
- If you do not have adequate landlord experience, then your attempts at obtaining a loan can result in a dangerous debt to income ratio.
- Acquiring a private money loan is receiving funds from sources such as a co-worker, family member, or your neighbor.
- Before you settle on a financial institution, go to several different banks and explore which loan option best fits your needs.
“Obtaining investment property loans is not impossible; it’s simply a matter of understanding the process and fitting the deal within the requirements of the lender.”