Where Can You Find Alternative Financing for Investment Properties?

If you need to obtain alternative financing for an investment property, I have a tool on my website that can help you.

The key to investing in real estate is to find the right property and the right financing. What if you

have the right property but need to find alternative financing, though?

For example, most of the properties that I have right now are so-called "good deals,” meaning they

are more or less scratched and dented. Let’s say you have a property with a single-family home in

front and a duplex in the back. The single-family home is in pretty good shape and you can pretty

much rent it out right away. The duplex in the back, however, is in a state of disrepair.

You can have good credit, good income, and a good down payment, but conventional lenders

like Freddie Mac and Fannie Mae won’t give you a loan because of the condition of that duplex. If

the kitchen is worn out or some essential appliances are missing from it, a conventional appraiser will

require that those deficiencies be fixed before closing.

However, in a situation like this, you cannot fix the place before you close. If you do that, you’re at risk because if it doesn’t close, you’ve wasted a lot

of money. Secondly, the seller wouldn’t allow you do to that because it would take time to fix that

property. There are also liability issues that could arise.

This is when you need to find alternative lending. How can you find alternative lending?

My website has an “Alternative Loan Search” tool on the left-hand side of the front page which

can direct you to the right type of financing for the property you’re seeking to invest in.  

For example, I recently had a friend ask me about obtaining financing for a vacant piece of land. If

you used my website to search for this type of financing, it would probably yield around 10 to 12

results for lenders who could help you and compare the pricing for building a home on that land. Later

on, you can always refinance on a conventional loan and use it for a few months or a few years.

This resource is similar to my “Finance Tools” link at the bottom of my website that allows you monitor

whether interest rates are going up or down for conventional loans so you can lock in the

best rate possible.

As always, if you have any questions about this topic or you’re thinking of buying or selling a home,

don’t hesitate to reach out to me. I’d be happy to help you. In the meantime, stay safe and stay happy.