A career in real estate investment has proved to have good returns and passive income in the long run. However, kickstarting your career can be burdensome, especially when securing funding. Luckily, you have various financing options to choose from. Here is a list of four major funding options.
1. Federal Housing Loans
For decades, the government has been providing incentives to home buyers by sponsoring with loans. Unlike conventional loans. Federal-sponsored loans have low credit score requirements. This makes it easy to qualify for a loan if you have a credit score of 550. Also, you get to pay a low-down-payment of only 3.5%.
2. Conventional Loans
Secondly, you should consider securing loans from traditional banks, especially when kickstarting your real estate investment career. With banks, you get to enjoy lower interest rates compared to other financing options. You also get specific information about conventional loans. However, you need to note that there are limitations to the number of loans you can secure from banks.
3. Veteran Affairs Loans
If you are a former military officer and wish to venture into real estate investment, you should consider getting a veteran affairs loan. This type of loan is only available to veterans, service members, and military spouses. The beauty of this loan is that you do not have to pay a down payment, and you are allowed to buy as many houses as you wish. However, you have to reside in a property for at least one year.
4. Private Financing
Instead of seeking money from institutions, you may opt to reach individuals to invest in your venture. Private money can come from family, friends, or co-workers. With private money, you get to enjoy flexible terms as long as you find the right individual to spend money on your investment.
Financing with Lionheart Commercial Capital
Initial challenges in real estate investment should not prevent you from kickstarting your career. It is worth noting that you must develop a good strategy for your financing options. In this case, you should consider liaising with Lionheart Commercial Capital for personalized funding solutions.