Salt Lake City Real Estate Tips, Market Updates and

Local Happenings

By Real Estate Expert KathyOHomes

Beginning investors often times don't have the money or expertise to find the money they need to invest in properties they find. Fortunately, there are many sources of money for good investment deals. Where can you find these sources? Here we'll cover some of the more popular sources of funding for real estate deals in Greater Salt Lake City/Park City.

Hard Money Lenders - Hard money loans are short term loans with very high interest rates and upfront points. You can expect to pay as much as 3%-10% in upfront costs to secure a hard money loan. However, for short term projects, these can be a great source of cash.

Angel Investors - If you truly have a winner deal on your hand, other experienced investors may be willing to lend you money in exchange for part of the profits. It helps to join real estate investing groups and make contacts so that you can find angel investors.

Non-Owner Occupied Loans - These are loans from traditional lending institutions that work similarly to residential loans. They look at your credit and debt to income ratio to determine if you qualify for the loan. NOO loans apply to investment properties of 4 units or less. Be aware that tax laws for NOOs differ from a standard mortgage loan.

Commercial Property Loan - These are loans from traditional lending institutions that work very differently than a mortgage. These loans are based completely on the property and your credit rating is not taken into consideration at all. The primary consideration is whether or not the property can pay for the loan, your character as an investor and the value and liquidity of the collateral.

Seller Financing - Seller financing is basically when you have the seller finance the property rather than have a bank finance the property. Seller financing is negotiated on a case by case basis.

As you can see, there are many different ways to finance an investment property. If the deal is truly a good deal, there should be no shortage of options for you. After all, investors are out to make money.

There is a lot of free information available to you about buying, selling or investing in Greater Salt Lake City/Park City real estate. For complete information about the Greater Salt Lake City/Park City real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Greater Salt Lake City/Park City real estate at www.KathyOHomes.com. Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 801-518-4599 or email me at kathyo@kathyohomes.com.

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