The potential options when it comes to financing a real-estate investment can be endless. The vast majority of investors start investing with %100 cash and there is nothing wrong with this. But as their portfolio grows, they eventually need outside sources of capital to obtain more properties and increase returns via leverage.
How to get investment property financing in Wilmington:
- Traditional Institutions
If you have great credit, the first place to look will obviously be a traditional lender. Traditional lenders will provide the lowest interest rates and the most favorable terms, especially if you qualify for a government subsidized loan. For a good investor friendly mortgage lender, I recommend Adam Slack with Guaranteed Rate.
I’ve done multiple real-estate deals with Adam and have been through scenarios that almost exploded in a fiery ball! Adam stuck with me and never bailed. He’s also knowledgeable on house-hacking, cash-flow, and is an investor himself.
- If this is your first mortgage, make sure to check out FHA, VA, and any other government subsidized loan!
- “Portfolio loans” are also available for investors that have more then two properties
- Make sure that you are maximizing cash-flow
2. Borrowing against “yourself”
This means simply borrowing against your current assets to finance an existing asset. For example, if you own an investment condo, you can refinance or take out a HELOC and use the finds to aquire another property!
Warning: Make sure the property cash-flows!
3. Private Lenders
Another way to finance your real estate investment in Wilmington is to use a private lender. Private lending is borrowing any money outside of a traditional lender. These can include family, friends, co-workers, etc. You pay them back, just like you would pay back a bank, but private lenders very rarely will examine your credit score (some may). They’re more interested in the actual investment and what the numbers look like!
4. Seller Financing
Seller financing is where the seller actually becomes “the bank” and will sell the property to you on payments.
“Newbie investors” are sometimes surprised that this method even exists but sellers like it because they get the cash flow without the headache of property ownership (plus their risk is minimized because if you fail to pay, the title of the property reverts back to them). This is another win/win deals.