Obtaining An Income Property Loan

With your decision to​ acquire an​ income property,​ you​ have also likely considered what you​ want to​ accomplish,​ and over what period of​ time. the​ same criteria that are used in​ any sound investment strategy or​ financial plan also applies to​ income properties. Property managers typically charge a​ percentage of​ gross income. This usually varies from 5% to​ 10% of​ gross income,​ often with an​ additional charge for new leases.

Property financing comes in​ many types and terms,​ depending on​ the​ property itself. Loans on​ income properties are usually tailored to​ each property type. Often,​ apartments can have longer loan terms than office or​ retail spaces. Remember that apartments are a​ more stable type of​ investment property than commercial buildings.

Before you​ enter the​ market for a​ loan,​ you​ should be sure to​ do some necessary groundwork. Here is​ a​ list of​ questions to​ investigate and answer that will help narrow down your request.
1.How much do you​ need?
2.What are you​ going to​ use the​ proceeds for and for how long?
3.How are you​ going to​ repay the​ loan,​ and under what terms?
4.What assets can you​ pledge to​ secure your loan,​ which would make your loan officer sleep soundly at​ night,​ if​ he decides to​ approve your loan?

Remember,​ loans are the​ products that banks sell. Look for the​ best combination of​ price,​ quality and reputation of​ supplier.

For more information on​ types and obtaining an​ income property loan,​ visit Security National Capital.

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