How to Finance Your Investment Downtown Minneapolis Condo

Get the best loan for your investment Downtown Minneapolis Condo.  Whether you are looking for financing for a rental Downtown Minneapolis Condo that you are planning to hold or a fixer property that you want to sell for quick cash.  This special report will uncover the place to start on your journey for investment financing.

SPECIAL REPORT:  How to Finance Your Investment Downtown Minneapolis Condo.

Looking for investment Downtown Minneapolis Condo can be a lot of fun.  It is a pleasure to go into a property just dreaming of the profits that the house could bring you in the future.  But before you start seriously looking for properties you need to have your financing plan lined up.

If you are planning on financing a rental Downtown Minneapolis Condo for the long term it is best to start by contacting a mortgage broker that works with many different lenders.  You will want to find a mortgage broker in Downtown Minneapolis that specializes in getting loans for investors.

If you are working with a real estate agent you can ask them for a referral.  You can also look for investment clubs for a Downtown Minneapolis Condo that will be filled with professionals that can help you find the financing that you require.  Go to www.creonline.com on the left look under resources and find the link for real estate clubs.

If you have excellent credit you will have the least amount of hurdles to jump through regarding financing a Downtown Minneapolis Condo.  When mortgage companies are looking at your credit, they are generally referring to your FICO score.  This is a compilation of the three major credit bureaus and is the standard for determining credit worthiness in the industry.

When looking at your credit score you will have access to the best loans and more negotiating room with a FICO score above 680. There are now many different loan solutions available to investors for a Downtown Minneapolis Condo. 

If your credit is not excellent there are still options available.  You may be able to negotiate the seller carrying a second mortgage on the property for you Downtown Minneapolis Condo. 

In this case let’s say you negotiate a price both you and the seller pf the Downtown Minneapolis Condo are happy with.  You agree to get a loan for 80% of the purchase price and the seller agrees to take payments for the remaining 20%.  It is easier to get a loan for 80% of the purchase price.  This is especially true if you have negotiated a price below market value.  Maybe you negotiated a sale price of $100.000 while the real market value is actually $120,000. With this example the lender that supplies the loan only has $80,000 at risk on a $120,000 property.  So their risk is much less.

Interview multiple brokers instead of just using the first one you talk to.  It is like picking any other professional.  You want to shop around the area a little to make sure you can get the best solution for your financing needs of your Downtown Minneapolis Condo.

Now in regard to getting loans for a fixer-upper Downtown Minneapolis Condo, it is much more difficult to get traditional financing for these properties.  With fixer-uppers, you can start by contacting a mortgage broker that does traditional financing, but what is normally your best bet is looking for a hard money lender or a mortgage broker that works with hard money lenders.

While traditional loans will only look at the current value of the property, hard money lenders will look at the after repaired value of the property and loan out anywhere from 50-80% of the after repaired value before your Downtown Minneapolis Condo is repaired.

It may be a mortgage broker that has contacts with investors, in some cases it is simply another investor that has money to spare and simply makes a good return on their investment.  Hard money loans are expensive compared to traditional financing.  Generally interest rates are between 12-16% and you may need to pay 3 to 5 points up front.

The benefit comes in the fact that in many cases you can get repair money for your Downtown Minneapolis Condo above and beyond the actual purchase price of the property which is generally unheard of in traditional financing.

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


Getting your first loan for your Downtown Minneapolis Condo as an investor can be the most work, but once you establish yourself as a successful investor, things become easier. 

There is a lot of free information available to you about buying, selling or investing in  Minneapolis Condos or Minneapolis Lofts. For complete information about the Downtown Minneapolis condo market including current condos lofts for sale, values, and more please visit the most complete website online www.downtownminneapoliscondo.com dedicated to everything Downtown Minneapolis Condos.  Contact Mike Weiland & Elke Stephan of The Weiland Group with any of your real estate or mortgage related questions by filling out the form below.

P.S. Free weekly list of Downtown Minneapolis Condo listings including private listings and foreclosures in the most popular locations call the 24 Hour Recorded Information Hotline Now for details...1-888-391-9039 Ext. 126 or visit www.downtownminneapoliscondo.com.

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 Tags: Downtown Minneapolis Condo, Downtown Minneapolis Condos, Lofts Minneapolis, Downtown Minneapolis Real Estate, Mike Weiland, Elke Stephan

Article's Author

Mike Weiland
The Weiland Group of Keller Williams Realty
Minneapolis, MN

Contact Mike Weiland