Rental properties are a great way to grow your wealth. But it can be difficult to secure Rental Property Loans in Arizona.
Home values are climbing which is great for anyone who wants to get into owning rental properties to increase their wealth. Many people are not looking to rent because they can no longer afford to purchase. So the rental market is strong and getting even better. But the housing collapse did have an adverse impact on the fast loans that many investors where using to buy rental properties. Now the best way to secure Rental Property Loans in Arizona is to know a few tips that the pros use.
Getting any loan is always easier if you are prepared to make a sizable down payment. In the past, putting 20% down was a big deal for most investors. But now with the tighter lending restrictions and qualification, 25% down or more is your best bet. Not only does this help to keep your payment lower, but it also will get you a better rate in most cases. So cash on hand can save you a lot in the long run.
Another important factor in getting approved for Rental Property Loans in Arizona is having great credit. Being a strong borrower will always get you the best rates and some other benefits as well. You might find that the processing of your loan request is not only faster but the process is less stressful as your credit does a lot of the talking for you. Lenders want to know that they are working with a serious professional who has a strong financial history and professional history.
Work With A Little Guy
Big banks are not going to be as impressed with high credit scores as a smaller bank or lender. Big banks are looking for big deals, so a rental property is not going to really get them excited. So unless you are buying an entire complex, check out smaller lenders who are willing to work for your business. They will often be more flexible simply because that is what they have to do to get customers. Big lenders make their money from corporations and huge businesses while smaller lenders, tiny local banks and savings and loans survive by doing business with local companies and individuals.
Be Creative
If you are finding it challenging to secure Rental Property Loans in Arizona, then get creative with your financing. The easiest way to finance a new rental property is to ask for seller financing. This is not always an option, but if you can find the right seller, then the financing could be fast and easy. Also, look at other personal sources that you might have. Using a personal home equity line of credit or even a personal loan could be a great way to make a fast purchase. Then you have the option to take some time and shop for a great rate to refinance. Using these tips can help you to secure your first few loans to begin a career as a rental property owner.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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