Many people dream of investing in real estate, but it is a difficult dream to achieve without investment property loans California. Real estate is quite expensive; in order to buy investment property, you must have a lot of money. If you don’t, your only choice is to borrow a lot. Many loans are risky and can land you in financial trouble if things don’t go exactly as planned. Investment property loans are a safe choice if you already own at least one real estate property. Of course, there are also other pros of an investment property loan with North Coast Financial.
Investment Property Loans are a Type of Hard Money Loan
A hard money loan is a short-term loan that uses a piece of real estate as collateral. When you secure hard money loans with a piece of real estate that is your primary residence, you can borrow up to 80 percent of the value of the property. And, you can use this loan to buy another property to use as an investment. If you already own an investment property and want to use it to secure an investment property loan, the maximum you can borrow is about two thirds of the property’s value. Otherwise, an investment property loan is just like any other hard money loan.
Investment Property Loans Are Quick and Convenient
The most desirable investment properties do not stay on the market for very long. An investment property loan can give you quick access to the cash you need to take advantage of an opportunity to invest. You can also use investment property loans to save your investment property from foreclosure.
An investment property loan is very much like any other hard money loan. The main difference is that it is especially for investment properties.