Wednesday, November 23, 2011

Use Creative Finance Strategies for Your First Brantford Investment!

Given the high number of distressed and affordable properties on the Brantford real estate market, many buyers are looking to break into the investment aspect of the industry. There’s no doubt that money can be made off of investing in real estate. Using the right Brantford real estate agent to help you find the right investment properties is a great start to breaking in to the industry, but there’s one obstacle that leaves some Brantford property investors a little bit puzzled: financing.

While the current state of the market is healthy and interest rates are low, lending restrictions have gotten tighter across the board. This leaves many who are interested in investing in Brantford real estate at a stalemate: how are they supposed to make money off of investing in properties if they can’t get the financing to buy these homes in the first place? As a Brantford real estate agent, I have two words in response to this question: get creative. In order to make it as an investor in this real estate market, you need to think outside of the box when it comes to obtaining financing. Here are a couple ideas that should help you get the loans you need for your first investment.

•    Get yourself a new home. This might sound a bit backward. If you’re looking to break in to the market, then why would you invest in a brand-new Brantford property? The answer is that interest rates are currently at an all-time low, and many lenders are only requiring 5% down payment on a property. If you can put that money down and rent out your own place, then you’ve successfully broken in to the investment business and are starting to get a cash flow on your old property that you’ve rented out.

•    Get a HELOC. “HELOC” stands for “Home Equity Line of Credit.” A HELOC is similar to any other line of credit. You use the equity of your home as collateral, and as you start to pay off your mortgage, your credit limit increases. You can withdraw credit and make payments whenever you want. This is a great way to come up with the funds for your first investment property and still be able to keep your old home.

Using some of these creative tactics to obtain financing for your first investment will help you break into the Brantford real estate market. Once you get your foot in the door, you can build up your investment portfolio and start seeing a profit from your purchases. The key is to educate yourself. Do your research on any and every option possible and proceed with the one that best fits your situation. Doing this will help you learn the ins and outs of Brantford real estate much faster. The sooner you dive in to your first investment, the sooner you will see the profits start to come in.

As always, the most important thing about starting a new real estate venture is to make sure that you have the right industry professional by your side. As a Brantford real estate agent, I can help you navigate your way through the properties on the Brantford real estate market and find the ones that are right for investment. I’m always looking to help new investors get started in the business, so if you have any questions, don’t hesitate to contact me! I’d be happy to give you some advice and give you the names of some of my contacts in the business. I hope to hear from you soon!

Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage
515 Park Road North | Brantford, ON N3R 7K8
Direct:  (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400

Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantofordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
 

2 comments:

  1. Remember having good credit is about much more than bragging rights. If your finances are not in order your dream home may stay just that.....a dream. Establish good credit habits now.

    Finance Info

    ReplyDelete
  2. Impressive blog, I really impressed the idea you share in this blog for sure majority of all reader really love this too.

    Business and Finance

    ReplyDelete