Investing in real estate is a common occurrence, whether to purchase a personal or commercial property. You don’t need a lot of money to begin investing, however. Real estate financing is available to help secure funds for any impending purchases. There is not one perfect fit for everyone, so exploring your options with an experienced broker is in your best interest.
If you would like to discuss real estate financing options with a qualified broker, the team at POM (Peace of Mind) Capital & Funding Services knows the strict regulations and requirements to help you smoothly secure funding for your real estate purchase.
Types of Real Estate Financing Options
Once you have found the ideal property, you will need to secure the right financing option for your situation. Different real estate financing options to discuss with your broker are:
- Cash Financing. For investors with significant cash flow, this is a great option to avoid paying interest and other fees
- Hard Money Lenders. Best suited for investors with poor credit scores and financial histories. These loans are often high interest and short term.
- Private Money Lenders. This option works like a traditional loan, but the lender is a personal connection willing to invest. These are short term loans, typically up to a year in length, and interest rates will vary depending on your agreement.
- Self-Directed IRA Accounts. You can borrow money from your IRA saving account, though bear in mind there are penalties associated with early withdrawals.
- Seller Financing. This option allows for the borrower and lender to create their own agreement in order to avoid a private lender. These agreements are tailored to mutually benefit the seller and investor, with the added bonus of avoiding closing costs.
- Peer-to-Peer Lending. This type of financing involves borrowing money from investors. This option is highly flexible, and investors are focused more on the value of the property than your financial history, though you may not secure 100% of the funds you require.
Buying new property can be one of the most stressful events in a person’s life. Fortunately, the team at POM Capital & Funding Group are well trained on the legal matters surrounding real estate financing. If you end up requiring a loan, our qualified team can go over your available options to help you get the best deal possible.
At the POM Capital & Funding Services, we can schedule a consultation to learn more about your options and what to expect when securing real estate financing. Coming prepared with the right financial documents and expectations will help your broker become familiar with your circumstances to get you the best loan possible.
POM Capital & Funding Services is a leading provider of alternative funding solutions for businesses of all types and sizes, offering commercial finance solutions and products to businesses in the Centerport, New York area and throughout the state of New York.