Getting Investment Property Loans In A Tight Market

Getting investment property loans has always been tougher than owner user or homeowner loans. In a credit crisis it can seem almost impossible. You call the bank and as quick as you say "investment property" or "I'm an investor" they say "oh we're not lending to investors right now". 

For a bank loan, cash for a down payment is king, and credit is queen. You'll need at least 25% down and in some cases 40% down. Even with plenty of income you must have solid personal credit history to get the deal done.   

• Private Lenders
• Mortgage Brokers

Private Lenders are a great resource, however unless you have good connections they can be tough to find. A good way to find private lenders is to look in the local county clerks' records. You want to look for individuals listed as the lender on recorded mortgages.

Investor friendly mortgage brokers usually have good private lenders that will do hard money loans. This will cost you a little more but, if you are getting a good deal or need to borrow money, a good mortgage broker can get the loan funded.

Investors with little cash wanting to get investment property loans may have to get creative in order to buy property. Here are a few ways to buy real estate with out using a bank, private lender, or mortgage broker. 

1. Do a Lease Option with right to sublease or resell.
2. Take over payments on an existing property loan.
3. Find an investment partner with available funds who does not want to do the work of finding an negotiating deals.