Down Economy: Using Creative Financing For Houston Investment Property
There used to be a time when people would think nothing about taking a mortgage or a loan and build or buy their house or perhaps some commercial property. All this was quite fine when the going was good and banks and financial institutions were just too happy to lend to prospective borrowers as the general economic outlook was quite encouraging and conducive to business. But times have changed and the economic crisis caused by fiasco in sub-prime lending has forced people to look for creative financing to buy their Houston Investment property. This is quite understandable given the current economic outlook.
One of the most common ways of creatively financing your Houston investment property in this day and age happens to be loans extended by the government at special rates. This is part of the economic stimulus package that the government has rolled out to bail the country out of the doldrums. It is also where private property seekers can take advantage of these easier terms and get the dream property that they have always wanted to own.
Looking at some of the other creative financing for Houston investment property options, you can consider rent-to-own property options. These are special options where you can enter into an agreement with the real estate company that you would occupy the property for a certain period of time and at the end of the period, you would become the owner of the property. Obviously, the amount of rent that you have to pay would be higher than normal rental tenants, but in return you get the opportunity to own the property instead of being just a lessee.
The third kind of creative financing that can be considered is hard money lending where people get access to funds to purchase the Houston investment property through a hard money lender. The hard money lender could get funds from private lenders or financial institutions. The advantage is that the borrower can get access to funds that he/she cannot garner in an individual capacity.
Another form of creative financing is fixer upper properties, which involves properties that have certain defects or flaws. These properties are available at prices much lower than the going market rate due to these defects. The wise Houston property investor can pick up these properties cheap, get them renovated and then sell them off at a profit.
Duke Morgan enjoys sharing what he’s learned about investment property in Houston especially with people interested in Houston investment tips.
Processing your request, Please wait....
