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Real Estate Investment Loans - Can they help you?

Everyone wants to have a safe financial future and the best way is to plan for your future today. One of the biggest ways that people are ensuring their future with is through real estate investment. Over the last few years, the real estate bubble has only grown and real estate is big business. However, with the growing number of real estate success stories there has also been a growing increase in real estate prices. Let’s face it – buying real estate is not cheap. Whether it is residential real estate that you are interested in or commercial real estate, you’re going to need a little help to be able to afford the expenses of owning real estate. Thankfully, you are at the right spot as we have all of the tips that you need to know when it comes to real estate investment loans. Residential real estate investment loans can be found from a number of sources that include banks, saving and loans associations, mortgage lenders, and credit unions just to name a few. For those of you who are interested in real estate investment, residential real estate investment loans cover property that is being purchased for rental income (up to 4 units) or for property appreciation. There are a number of requirements that you need and a lot of factors that you have to be aware of before picking your real estate financing option. These have been covered in the article regarding Mortgages, but here are the factors that you need to consider when considering a residential mortgage – interest rates, payment, final value, principal, and terms of the mortgage loan. When discussing the characteristics of your residential real estate investment loan, make sure that you discuss the type of mortgage rate plan and also the length of time. However, if you are interested in commercial real estate investment loans, here are some tips that you should know. First of all, commercial real estate investment loans are given to those individuals who are purchasing real estate designed for commercial real estate purposes such as warehouses, malls, stores, and rental buildings with 5 or more units. Essentially, the real estate investment loan’s interest is to be paid from commercial income rather than personal income. Therefore, commercial real estate investment lenders are concerned with potential borrower’s income, credit scores, and reserves. It is important that if you go to a traditional bank for a commercial real estate investment loan that you have several years of tax returns available to qualify. Additionally, you should know that if you are attempting to find a real estate investment loan for a commercial enterprise other than an apartment, a retail business, or an office building, that it is becoming increasingly difficult to find a commercial real estate loan. For your best interest, it is important for you to know that you should not be required to pay an up-front fee for a commercial real estate investment loan.