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

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April 23, 2009, by Kathy Opolski in Real Estate Investing

Finding a rehab property is one thing but finding a place to finance it is another story. You need to interview multiple lenders and mortgage brokers rather than just using the first one you come across. It is the same as choosing any other expert. Call 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 you try to finance a fixer upper you can begin by getting a hold of mortgage brokers that do traditional financing, although your best chance is probably a hard money lender or a mortgage broker that has access to hard money lenders.

Hard money lenders are much more flexible. For example, while most banks look at the current estimated value to determine how much money they will loan, hard money lenders in Salt Lake City, UT will look at the projected value after repairs to determine the amount of money they will loan.

You may even find that it is the bank loan officer in Salt Lake City that knows the procedures to follow and how to find the right people to assist you in obtaining acceptable financing for your investment property.

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. Why would anyone pay these rates? Well, the major benefit is that they will lend more money than a traditional lender and approve more properties. So ultimately if you plan to sell the property relatively soon or refinance it, hard money is a perfect way to go.

Make sure you include them in your purchase and holding costs so that you end up with the profits you are looking for on the property after all is said and done and you simply look at the costs of hard money loans as a cost of doing business.

To qualify for your very first loan in Salt Lake City, UT is the toughest. Once you do it once or twice it will become much easier.

There is a lot of free information available to you about buying, selling or investing in Salt Lake City Utah real estate. For complete information about the Salt Lake City Utah real estate market including current homes for sale, mortgage tips and more please visit the most complete website online dedicated to everything Salt Lake City real estate at KathyOHomes.com BuySaltLakeCityHomes.com. So 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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If you or someone you know are in need of a competent and caring real estate professional in or near Salt Lake City, Utah , I hope you will contact me.