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Friday, August 13, 2010

All You Need To Know About Traditional Investment property financing source

If traditional lenders are turning down you then it is the time to think about non-traditional lending methods. Here there are some of the better ways of non-traditional to finance investment property.

Selling financing: Seller allows you to pay them for the property over time with seller financing. You just make the payment to them though the loan may stay in their name. To avoid mainstream lending this is great way as it is happen between private parties. All of the terms can be negotiated of the seller financing with seller. Interest rate and length of the loan and payments can be negotiated by you. Flexibility is presented by this option to you and no need to have seller credit.

Private Investors: Financing can be provided by private investors and it is another source of financing. You need not worry about the traditional loan approval, because the private can provide you with cash. Any way private investors want higher returns so you need to prepare to pay little more for the loan than you generally paid.

Several ways are there to use private investors. Partners can get into your deal but that cut your profits. They involve in the deal throughout by investing some amount of money. As you are selling your share of the business and future profits, it is also called as equity financing.

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