Wednesday, March 12, 2008
prepare to buy investment property
Preparing to be in a position to purchase properties in the up coming months you will need a little understanding of some events that may be inevedable. First as seen in the news there is a major mortgage mess...the effect this has on you is that finding financing for the investment property is going to be more difficult. In the past investors could purchase properties with little or no money down,no more. The lenders are changing their qualifiing criteria every week. Lets just focus on one aspect..more and more the lenders are requiring more down payment..20% down on a $200,000 property is $40,000 plus closing fees. If you find that investment property will you have these funds available to you ? One way to get the money would be from the equity you have in an existing property(investment or primary home).If you wait and try to refinance under pressure to access the funds at the same time you are negotiating the purchase it will not only be stressful but it will not be the best postion to negotiate from. Sellers are not ussually fond of contingencies in the purchase offer.Also consider Your properties are probably at a higher value now than they will be in the up comming months. You may want to liquify those equity dollars now to have the funds in place when the oppurtunity arises to make the investment purchase.