Salt Lake City Utah Real Estate professional Kathy Opolski Discusses Ways to Finance Rehab Properties in Salt Lake City Utah

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November 5, 2010, by Kathy Opolski in Real Estate Investing

You need to interview multiple brokers rather than just using the first one you come across. It is the same as choosing any other expert. You will want to be sure to shop around the Salt Lake City Utah area to make sure you are getting exactly what you need.

It is much more difficult to get traditional financing for these properties because they are looked at a little different than a primary residence.

When working on fixers you may want to consider seeking a hard money lender for financing rather than a traditional mortgage broker.

Read the local paper in the Salt Lake City Utah area, and you can find financing options and alternative mortgages here as well as through your real estate agent and via investment property finance firms.

Hard money lenders are willing to loan between 50 and 80% of the value of a property after repairs, whereas traditional lenders will only loan based on a property's current value.

You may even find that it is the bank loan officer in Profile.market that knows exactly ho to call in any investment situation.

Traditional financing is much cheaper than getting a hard money loan. Interest rates average between 12-16% with a possible 3 to 5 point deposit.

The benefit to the investor is that hard money lenders will lend estimated value after repairs and lend money on that amount allowing you to finance all of the repairs that are needed.

All you have to do is look at the costs of hard money loans like the cost it takes to do business. To end up with the profits that you are looking for on a property, make sure to include those costs in your purchase and holding costs.

In order to qualify for your very first loan in Profile.market Being an investor can be hard work until you have yourself established.

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