One of the oldest adages in investing goes something like, “Land is always a good investment because we can’t make more of it.” This still rings true today and is a great way for someone to diversify their portfolio without having to worry about the volatility of the stock market.

But how does one invest? The most successful Real Estate Investors will all tell you that utilizing financing as a means to optimize your own funds is the best way to go when it comes to purchasing a real estate investment property. But with so many options out there, how does an investor know which one is best?

1. Conventional Loan
A Conventional Loan is best for someone purchasing a home that is “turn-key” and does not need repairs. When qualifying for a Conventional Loan, the following are taken into account:

• Credit Score
• Income
• Assets
• Debt

Depending on the occupancy of the home, a buyer will need 3-25% as a down payment. These loans are regulated through Fannie Mae and Freddie Mac.

2. Portfolio Loan
Portfolio loans are typically niche products that allow people who do not qualify for Conventional Financing to obtain a loan. They tend to be balloon notes that are due within 5 to 15 years. They are a good option for some looking for longer term financing.

3. Hard Money Loan
Hard Money Loans are typically used by Real Estate Investors purchasing a distressed property in need of repair. By obtaining a loan off of the expected After Repair Value of the property, an investor can minimize the funds they would need to invest in the property. These loans are short term and can be refinanced into a Conventional Loan or a Portfolio Loan after the property has been repaired, or can be sold for immediate profit.

So how do you know which financing option works best for you? Contact the Real Estate Investment Specialist at Zeus Hard Money. We can analyze your scenario and find the right loan to fit your investment needs. We work with investors looking for both a quick “flip” and a long-term rental property, and we love scenarios!