Real Estate 4 Investing

Making Income Through Rental Property

  • Home
  • Investor Profile
    • Pre-Approval Form
  • Articles
    • Finance
    • Profitable Investment Properties
    • Real Estate Auctions
    • Real Estate Investing
    • Real Estate Investments
    • Real Estate Investors
    • Tampa Real Estate Investing
    • Taxes
    • Wholesale Real Estate
  • Videos
  • Properties
  • Testimonials
  • About
    • Investing in Rental Property
  • Contact
Home / Articles / Finance / How to Finance Real Estate Investments

How to Finance Real Estate Investments

February 18, 2016 By Jorge Vazquez

How_to_Finance_Real_Estate_InvestmentsMany people want to purchase real estate as a way to make their money work, while also diversifying their investment portfolio.

So, here are some basic steps to take before purchasing an investment property, and some simple ways to finance real estate investments.

Have an Investment Plan

Before you start buying investment properties, it’s important to create an investment plan.

Some of the things you’ll want to include in your plan are:

  • Your financial goals.
  • Financing of investment properties.
  • Cash needs to start investing in real estate.
  • Criteria for choosing investment properties.
  • How you will rehab properties, including using a general contractor and/or a project manager.
  • Management of rental properties.
  • Holding and exit strategies.

Credit Reports

When developing your investment plan, check your credit report to see if your FICO credit score is high enough to borrow the money you will need.

Check for mistakes when reviewing your credit report, and make sure you understand the components of the score. There may be simple things you can do to improve your score, and thereby save money by borrowing at a lower interest rate.

And perhaps most importantly, make sure you know how to keep your credit score as high as possible.

Create a Financial Portfolio

While in the planning stages, begin assembling a financial portfolio, which should include everything you need to conduct business with lenders and business partners.

Depending on funding sources you are considering, your financial portfolio could include:

  • Business plan / real estate investing business plan.
  • Business and personal bank statements.
  • Business and personal tax returns.
  • Information about investment accounts.
  • Proof of income: pay stubs, 1099s, K-1s, etc.
  • Mortgage statements.
  • Driver’s license (copy).
  • Explanation for each time your credit was pulled in the last year to show whether you have recently incurred new debt.

Build Relationships with Community Banks, Private Lenders, Portfolio Lenders, and Hard Money Lenders

Big banks are often the last resort for funding real estate investments. Rather, build relationships with lenders who are easier to work with when funding property investments.

Depending on your background and connections, most investors will have several options for funding real estate investments. Typically, the first lending sources you’ll want to explore are community banks, private lenders, portfolio lenders, and hard money lenders.

Rental Properties Can Pay for Themselves and Generate Cash Flow

When purchased, rehabbed, and managed correctly, rental properties pay for themselves and generate positive cash flow. Besides paying for themselves, rental property can throw off cash that may be used to purchase additional properties.

You need the initial cash to purchase the first rental property and get it on the market, but then you can typically finance the property and leverage it to help purchase additional properties, as it continues to generate cash each month.

Graystone Investment Group

Graystone is an experienced Investment Group, wholesaling properties in the Greater Tampa Bay market. Our company is designed to help new and seasoned investors.

Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.

To learn more about profitable investment real estate in Tampa Bay, fill out our Investor Profile, or contact us direct.

headshot of Jorge VazquezLearn More About Real Estate Investing

The Graystone Newsletter will keep you informed with important information relating to real estate investing. The newsletter includes information we share with our clients about the best places to invest in real estate, the latest trends, and the information you need to know to succeed investing in real estate.

Real estate investors, wholesalers, flippers, real estate agents, and everyone connected to the real estate industry will benefit from the wealth of information we share very month.

For more information about how we process your data, please click here to read our Privacy Policy.

Disclaimer:
REALESTATE4INVESTING.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP, A SUBSIDIARY OF GRAYSTONE INVESTMENT GROUP. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.

Want To Learn More About Real Estate Investing?

Sign up for our newsletter, and you'll receive our newest articles!

By clicking this button, you consent to receive emails, calls, and text messages about our products and services at the email address and phone number you provided. You agree that such calls may be made using an automatic telephone dialing system, they may be considered telemarketing or advertising under applicable law, and that you are not required to provide your consent to these calls to make a purchase from us. For more information about how we process your data, please click here to read our Privacy Policy.

Recent Articles

  • What Does a Realtor Do for the Home Seller?
  • What is a Mortgage?
  • Pros and Cons of Paying Off a Mortgage Early
  • How Do Interest Rates Affect the Housing Market?
  • How Long Does It Take to Buy a House?

Get Started Right Now!

Get started investing in real estate with Graystone Investment Group.

For more information about how we process your data, please click here to read our Privacy Policy.

Graystone Investment Group
3001 N Rocky Point Dr
Suite 200

Tampa, FL 33607 USA
(813) 449-4323
phone Graystone Investment Group Call (813) 449-4323
Subsidiary Brands:
Graystone Acquisitions
Graystone Real Estate
Homes4Income.com
Rental4Income.com
RealEstate4Investing.com
Accessibility
Terms of Service
Privacy Policy

Categories

  • Articles
  • Finance
  • Market Reports
  • Profitable Investment Properties
  • Real Estate Auctions
  • Real Estate Investing
  • Real Estate Investments
  • Real Estate Investors
  • Recent Properties
  • Tampa Real Estate Investing
  • Taxes
  • Testimonials
  • Uncategorized
  • Videos
  • Wholesale Real Estate

Recent Posts

  • What Does a Realtor Do for the Home Seller?
  • What is a Mortgage?
  • Pros and Cons of Paying Off a Mortgage Early
  • How Do Interest Rates Affect the Housing Market?
  • How Long Does It Take to Buy a House?
Investor Profile | Private Lender Profile | Client Evaluation | Rewards Program
Recent Properties | Pre-Approval Form | Legal Notice | Terms of Service | Privacy Policy
© 2023 GRAYSTONE INVESTMENT GROUP, ALL RIGHTS RESERVED. THE Real Estate 4 Investing LOGO AND BRAND IS THE PROPERTY OF GRAYSTONE INVESTMENT GROUP LLC
DISCLAIMER: REALESTATE4INVESTING.COM IS A WEBSITE OF GRAYSTONE INVESTMENT GROUP LLC. YOU ARE HEREBY NOTIFIED THAT NEITHER GRAYSTONE INVESTMENT GROUP LLC, NOR ANY OF ITS EMPLOYEES OR SUBSIDIARIES, REPRESENT YOU IN ANY CAPACITY. YOU SHOULD NOT ASSUME THAT GRAYSTONE INVESTMENT GROUP LLC OR ANY OF ITS EMPLOYEES OR SUBSIDIARIES IS A REAL ESTATE BROKERAGE. WE ARE A WHOLESALER, AND ALWAYS ACT AS A SELLER OR ASSIGNOR ON EVERY TRANSACTION.
Internet Marketing by Image Building Media.