Want to buy your first investment property but are not sure how you will finance it? Here are 6 ways to get the money you need to invest locally in the Syracuse area!
Investing in Syracuse, real estate is never a bad idea. Real estate investments are one of the best ways for people to build wealth while yields remain high. For many people, buying their first property is the hardest part. Once you clear that hurdle, investing in property becomes easier and easier. If you build up equity and experience, you will be better in a position to spot deals and have the means to quickly convert them into profitable investments.
Find A Partner
Partnerships are one of the best ways for first-time investors to get a desirable property deal. It is important that you work with the right people so that you can avoid the remorse of a buyer along the way. To find the right partner, you can join local investment groups, reach people on online forums, or reach the people, you know who do most of the shopping in your area. These more experienced buyers could not only work with you, but could also support you as a mentor.
Utilize A Private Lender
Working with a private lender in Syracuse can help you get the money you need for your first property investment. Typically, they will have different requirements for a loan than a conventional bank. You will probably get your money faster without having to go through so much bureaucracy.
Sell An Asset
Do you own land? Perhaps an additional vehicle? Many people have valuable assets lying around that could possibly be liquidated and reinvested into something of greater value. Often these types of assets are not even considered because they have been idle for so long. Take a look at the things you own and what you are worth. If you are not making money or are deeply sentimental, consider how the sale could help you obtain your first real estate investment in Syracuse.
Save For Your Down Payment
Depending on where your finances stand today, it may possibly be easier to save for your deposit than you think. In order to borrow money from a traditional lender, you will in most cases have to pay a 20% down payment. Your first investment property doesn’t have to be anything remarkable. You can buy a property for less than $100k in many parts of the country. While $20k in savings sounds scary, it can happen if the reasonable budget is put in place.
Utilize the Owner/Occupant Loophole
Many investors start with an owner-occupied investment property. With an FHA loan, you can purchase a home with up to four units. The catch is that you have to live there for about two years. Even though apartment buildings may not be what you are looking for personally, short-term living there can provide you with free rooms and food, while investing money in an apartment building that generates income and can benefit you for years to come. For many investors, trading is often worthwhile!
Single investors seeking to buy their first home or investment property can apply the same concept to a single-family home. If you rent out the rooms to friends or family, you can pay your mortgage and possibly live for free. You can rent the house out completely, or you can move in with your future family and a large part of the debt has already been paid.
Get A Home Equity Line of Credit (HELOC)
A home equity line of credit, or HELOC, can help you purchase your first investment property by providing you with a loan secured by the current equity of your primary residence. It is also known as a second mortgage. Debt-free equity is essentially money that just sits there. If you use a HELOC to buy an investment property in Syracuse, you use that money for yourself, which pays off in the long run. HELOCs can be secured relatively quickly and offer very competitive interest rates.
Buying your first investment property in Syracuse is a big deal! At High Peaks Capital we can help you achieve your investment goals by helping you find the perfect property. We offer discounted properties in Syracuse and work with investors or people who want to save money for a home. If you are willing to buy a house in Syracuse, find out how High Peaks Capital can help you.