Beginning a career as a rental property owner is a great way to take control of your life and your finances. But getting Rental Property Loans in Arizona can be a challenge.
Getting into real estate investing is a great way to be your own boss and increase your earning potential. But it can be a challenging career to break into. In order to ensure success, it is important to become as strong financially as possible. Being a strong borrower is one of the best ways to ensure that you will always be approved for Rental Property Loans in Arizona. Taking just a few important steps before launching your real estate investment career will greatly increase your potential for not only success but great profit.
Making a substantial down payment is always important on your first few investment properties. Now only does this help to keep your payments lower but it also decreases the amount of interest that you will be paying which instantly increases your profit. Large down payments would be anything over 25% of the purchase price. Knowing that you are going to need such a large down payment, you might need to save longer than you planned before making your first purchase. It could even be helpful to get a part-time job or second job for a period of time to help increase your funds.
Another factor that will greatly influence your profit margin is the interest rate you are paying on Rental Property Loans in Arizona. A lower interest rate is a great way to increase profit. But being new in the real estate business, you might have a hard time finding a good interest rate unless you have great credit. It can be wise to take some time before making a purchase to focus on improving your credit rating. You can do this by decreasing your personal debt, being on time on all of your bills and even paying off some loans early. All of these steps might not appear important at first but they can help you to create a solid financial foundation for yourself and your real estate business.
Prep Your Documents
Once you have a strong financial profile, it is important that you can demonstrate that fact to lenders. You will want to have all of your bank statements, proof of income and tax returns compiled and ready to include with any loan applications that you are submitting. It can take some time to get your documents compiled and in a professional looking presentation. Having this task completed prior to shopping for a rental property will help to reduce your stress level when it’s time to make a purchase.
Keep Your Options Open
You might find that not every lender is interested in offering Rental Property Loans in Arizona to someone who is new in the real estate investment field. So you will want to submit your application to several lenders and then take some time to compare the total cost of all of the loans that you are offered. Making a good first choice is important to a profitable first rental property.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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