Comments on: What’s the best way to finance a real estate investment loan?

By: Sabharwal K

Sabharwal K — Thu, 31 Jan 2008 05:18:08 +0000

the best is go yo a financial consultant

By: Kenneth D

Kenneth D — Thu, 31 Jan 2008 00:48:16 +0000

You need to re-think your numbers a little. If you finance a $130K loan, the cost is going to be several thousand dollars. You are talking about a high risk loan so expect to pay a few points at closing also, if you can get a loan. Check with all of the above until you find a mortgage broker that you are comfortable working with. However, this property in particular may not be well suited for a rehab. If there is only a $10K spread on a $150K investment, I would be extremely careful. You need to consider ALL of the costs. How will you sell the property? What if it doesn’t sell right away? The loan service on a $130K loan will be $1,000 per month or more (depending on taxes and insurance). If you sell the house quickly, say 4 months to rehab and flip, that would be $4,000 of your projected $10K profit. What if it takes an additional 6 months to sell?

Best of luck to you.

By: William H

William H — Tue, 29 Jan 2008 13:49:25 +0000

If you can’t afford to pay cash for the investment, then don’t do it.

Also, if you don’t know what type of loan you might go with or type of bank to use, then you need to spend more time learning about finance.

Third, if all you are going to make is $10,000 it is more than likely the interest on the loan will be greater than that and you will end up losing money.