If you’ve been considering the purchase of a (or another) rental property, a mediocre – or even a low – credit score doesn’t have to stop you from obtaining the financing that you might need. In fact, there are several possibilities for getting around low credit, and still taking advantage of rental real estate.
One option is to work with a hard money lender. Unlike traditional mortgage lenders – which focus primarily on the borrower and his or her credit – a hard money lender will typically consider the value and potential profitability of the property itself.
Because of that – and especially if a property has positive attributes, such as income potential, resale value, or both – hard money lenders can take more chances on borrowers who may not have the best of credit scores.
One thing to keep in mind when it comes to hard money lenders, though, is that this is not a long-term solution. These types of financing arrangements may also require a higher amount of down payment and / or a higher rate of interest on the repayment. Hard money loans can, however, allow you to keep moving forward with the purchase of valuable investment real estate.
In addition to having the necessary funds for purchasing investment real estate, managing and maintaining rental property can take time – but that time doesn’t not have to be yours. By partnering with an experienced property management team, you can essentially hand off the duties of collecting rent, making repairs, and even screening for tenants – all while still enjoying the tax and income benefits of owning rental property.
If you own, or your soon will own, rental property in Orlando and / or the surrounding Central Florida area and you’d like more information on how a property manager can work for you, just give us a call today.