FINANCE A REAL ESTATE INVESTMENT

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We all know that owning your own home is a great investment and has many advantages over renting. In addition to their home, many consider the purchase of investment properties a sound choice. 



If you're interested in investing in property, then maybe you're wondering how to finance it. Real estate investments can come with a steep upfront price tag. Fortunately, you have several options:







FINANCE YOUR PROPERTY WITH CASH


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Pros: If you've got the resources to do so, paying in cash will remove any financing doubts in the seller's mind. You also save a lot of money in interest expensive that come with loans. 

Cons: Risk vs reward. Paying with cash caps your potential gains. 

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FINANCE YOUR PROPERTY WITH A PRIVATE INDIVIDUAL LENDER 


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Pros: Private lenders tend to be more flexible than traditional institutions. 

Cons: Private lenders tend to have higher interest rates than banks. 







FINANCE YOUR PROPERTY WITH HARD-MONEY LOANS


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Pros: Approval can take as little as seven days. 

Cons: The interest rates can be significantly higher than traditional mortgages. 







FINANCE YOUR PROPERTY WITH CONVENTIONAL BANK FINANCING


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Pros: This option traditionally tends to have lower interest rates than private lenders, and it can maximize your potential profit. 

Cons: Banks have longer approval processes and much stricter lending profiles than private lenders. Borrowers are also limited on how many conventional mortgages they can have open at a time. 

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