Real Estate Development Financing
How can I obtain financing for a development property I want to buy?
Should I use a mortgage broker to get financing for a flip property?
When looking for a mortgage for a flip property, you have to realise that it's very different than getting a mortgage for a property you're going to live in permanently. Why? Because there's such things as prepayment penalties, and a lot of times banks don't want to loan to someone that they're going to know is going to sell the house in six months. I always recommend working with a mortgage broker rather than going with a bank, only because mortgage brokers have access to all the banks. A mortgage broker makes his money up front when the mortgage is obtained. A bank makes their money over time, so a bank that makes its money over time is not going to want to loan you a loan that's going to get paid off in six months.
How can I find the right mortgage broker?
What if I am unable to flip my house at a profit?
One of the safest ways to invest in real estate, which means when you're buying a property that you're going to fix up and flip is having your exit plan ahead of time. What that means is that if you fix up a property and you want to go to sell it, I want you to find properties that you have the option to sell, hold or and rent it. You want to look for properties that are actually available, beautiful and wonderful and that someone might want to rent if you had to. That's called an exit strategy meaning that way you don't have to go and put it on the market if you don't want to. So, having a property that could be rentable is a great value and a great asset.
What makes a house 'rentable'?
