Finance: Residential Income Property Financing: Part 2 of 3

Residential Income Property Financing: Part 2 of 3

Written by Cameron Brown

Welcome to repparttar second segment of a three-part series about income property. In this second segment we will be discussing financing options for residential income properties as well as repparttar 143546 upside (and downside) of owning this type of property.

Financial Concerns

Financing options for residential income property vary widely from commercial or industrial properties. For one thing, most private lenders place size requirements on repparttar 143547 apartment complexes they are willing to finance, usually five units or more. Smaller complexes just don't have repparttar 143548 revenue generation potential required to make your loan officer feel comfortable.

The good news is that residential income property loans usually carry a higher LTV ratio than other property types. If you recall from repparttar 143549 first segment of this series, LTV (loan-to-value) ratio indicates repparttar 143550 percentage of money your lender will lend you to repparttar 143551 property's market value. An 80% LTV is repparttar 143552 maximum most lenders will provide for residential income property.

Loan terms usually range from 25 to 30 years with a maximum loan amount of up to $3 million. Current competitive interest rates can range from 4.70% up to 6.625% depending on several factors including your credit rating and repparttar 143553 size of your down payment.

Most loans for residential income property are termed as 'recourse loans'. This means that repparttar 143554 lender has 'recourse' to your personal assets in repparttar 143555 event you default on repparttar 143556 loan. Needless to say, you need to make sure you are ready to assume repparttar 143557 financial responsibility of making your payments in a timely fashion.

Managerial Challenges

Besides financial responsibility, residential income property management brings with it other unique challenges. Likewise, it demands certain skills above and beyond investment savvy and experience. To successfully manage your residential income property, you'll need a good combination of street smarts, interpersonal, and handyman skills.

Credit Repair Services vs. 'Do-It-Yourself' Credit Repair

Written by Todd Disraeli

Millions of Americans suffer because of bad credit these days, and almost all of these people turn to repparttar

Internet for help. In repparttar 143545

past 5 years hundreds of ‘internet-based’ credit repair services have sprung up , preying on consumers in need of real help. Most of these companies have built less than desirable reputations by over-promising and under-delivering; all repparttar 143546

while taking millions of dollars from those in need.

For this week’s article I am going to compare ‘internet based’ credit repair services to repairing your credit yourself using a system like Loan Saver PRO: for Consumers; you can learn more about their system here - http://www.loansaverpro.com/index-1.html. Hopefully I will open your eyes to repparttar 143547 fact that you can do everything they can do, for far less money, and achieve even better results in far less time.

Cost Comparison

Credit Repair Service – Almost every credit repair company found on repparttar 143548 internet charges a set-up fee of at least $60 and an ongoing monthly fee of at least $49. They initially tell you that your credit repair work will probably take around 3 months to complete. In reality, your credit repair work ends up taking close to a year or more and now you’ve paid them at least $600. The goal of most credit repair services is to take their time repairing your credit so they can keep debiting your bank account.

Do-It Yourself Credit Repair – There are several ‘do-it-yourself’ credit repair systems found on repparttar 143549 internet. Most of these systems cost no more than $40, which is less than repparttar 143550 set-up fees for most credit repair services, plus there is no monthly fee. Some of these products are good and some are bad—whichever one you choose, don’t use a ‘do-it-yourself’ system that uses ’pre-made’ letters to launch disputes; I’ll explain this in more detail below.

Dispute Letters

Credit Repair Service – Almost every ‘internet based’ credit repair service, and some ‘do-it-yourself’ credit repair systems, use ‘pre-made’ attorney letters to dispute information on your credit report. Using these types of letters often raises major red flags at repparttar 143551 credit bureau level and may result in your dispute request being denied. How do you know if your dispute has been denied? You’ll know when you receive a ‘Will Not Take Action’ letter from repparttar 143552 credit bureaus.

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