Real Estate    

Types of Investment Property Loans

Are you thinking about getting into the investment property business? It can be super profitable and filled with challenges that’ll keep you on your toes all day, every day. Of course, you’ll need to secure some financing if you’re ready to take on a mortgage that enables you to buy your first (or next) rental property. Fortunately, there are plenty of options beyond the conventional loan that might pop into your head at first thought. Here’s a quick rundown of a few popular options.

1. Private Lending

Private lenders are people or companies who can lend money to you, but they’re not tied to any bank or credit union. With this type of lender, the loans typically happen reasonably quickly because the application process is informal. Some private lenders may be more willing to work with you if you have poor credit than would a traditional financial institution. You’ll be required to adhere to the terms of your lender’s loan, just as you would with a bank or credit union, and you’ll still be paying interest because that’s how your investor makes money.

The biggest attraction to this type of loan is typically the expediency in which the loan transaction often occurs. Bear in mind, however, that private lenders often want their money back much quicker than a bank would, so you probably won’t be able to get a 30-year mortgage from a private investor. These types of loans are best if you plan to pay your investors back in three to five years.

2. Hard Money Lending

Hard money loans are also secured by private investors (either individuals or groups) who agree to give you the money needed for a very short term—usually around 12 months but sometimes up to five years. With these loans, you’ll be required to make a balloon payment at the end of the term, which will pay back the principal plus the accrued interest. The focus on this type of loan is the value of the property. If you’ve had a recent foreclosure or short sale, you might have problems getting a loan with a traditional financial institution. However, hard money lenders might still be willing to contribute to your investment.

3. Debt Crowdfunding

Debt crowdfunding (also known as peer-to-peer lending) occurs when a lender essentially acts as a traditional lender, providing you with the necessary funds you need at an agreed-upon interest rate. The idea is similar to those of Kickstarter or GoFundMe. But the difference is, with those sites, people contribute without expecting anything in return. Real estate investors, however, expect to earn interest on their contributions. Before they give you money, they might want to know:

  • How much the property is worth.
  • In what neighborhood you’re purchasing the property.
  • If you’re planning to hire a professional property management company to handle cleaning, maintenance issues, advertising, tenant screening, and potential evictions.
  • Whether you plan to live on-site (in a multi-family dwelling), or if this will be an investment property in which you do not live.

The rules may vary depending on your investor, but the interest rate is typically lower than what a bank would charge, and these loans are often easier to obtain.

Before you sign on the dotted line, make sure you’ve assessed all possible options so you can ensure that you’re getting the best loan possible for your unique situation. If you’re unsure, or if you have questions, consider talking to a mortgage broker who’s experienced with a variety of loan types. These real estate pros know how to navigate all sorts of loans.


Everything You Need To Know About Retiring In Spain

There are over 5 million foreign nationals living in Spain. This is a staggering 12% of the country’s population. Spain is a diverse country, and it attracts thousands of retirees to its shores, mainly because of its quality of life. Stunning weather, beautiful beaches, and an amazing health care system is today attracting more and more people to Spain. Juan Lopez of explains what you need to know about retiring in Spain

The cost of living in Spain

Many consider the cost of living to be one of the many perks of relocating to Spain. If you eat like a local, you will save money. You can save extra money by avoiding tourist areas. Depending on where you decide to settle and your need, housing and utilities can be quite expensive.

The Spanish climate

Spain is a large country and depending on the region you have chosen, you may experience a much different climate than you are used to. In the North of the country, you will find that the climate consists of mild winters and warm summers. The South of Spain is very hot while central Spain tends to experience extremes of hot and cold. The World Health Organisation rates the Costa Blanca climate one of the best in the world.

Transportation tips

If you are looking at moving items across Spain, the most common method to do this is by road? If you are moving to a city it may be helpful to remember that there are a number of very narrow streets. Many of these streets are not easily accessible by truck. Additionally, Spain is also known for its strict parking regulations which will make some areas much more difficult to access than others.

Another aspect to take into consideration when you move to Spain is taking your household items with you. When you move you can choose between either a direct load, which is far more expensive but you will have the truck to yourself or a Shared load. The advantage of choosing a shared load is that there will be lower moving costs as the journey will be shared between two or more people. While this option may be cheaper, you may need to may several stops before your furniture is delivered to your new home.

Healthcare in Spain

Spain is widely known for its excellent healthcare service. In Spain, residents receive free or low-cost healthcare. Those who work in Spain and contribute to the National Insurance also have access to the National Health Service. Private healthcare is also available through various medical schemes in the country. If you are only looking at a short visit check if you are covered with your healthcare provider.

The lingo

Take this opportunity to learn Spanish! There are many areas where locals do not speak English. Here you will find that a short course or two will give you an advantage.

Buying a property

The last thing you want happening is a misunderstanding when you are in the process of buying a property in Spain. Enlist the services of an advisor, particularly someone who specializes in Spanish Law.