I am wanting to start investing in some real estate. I have pondered some recreational properties that are near a popular lake in our Tennessee area. They seem to do well in certain times of the year. My question is this, I don’t know much about loans. With so much media shoved at us, it seems like every ones in the loan business. What kind of loan would i need to look at? Are interest first loans a good way to start?
Howdy Hibbsprinting:
You are right about all the media. I get all sorts of email and phone calls. Find a broker who uses several different sources as they will have more different programs to offer.
I am not sure what you mean about interest first loans. There is interest only that I would not do unless short term. If the deal is so close on cash flow that you need to do this the deal may not be that good.
I am using hard money loans on rehab deals with interest only at 14% but it is short term and the only way I can do deals with my credit and the condition of the property.
Hope this helps some
hibb,
I am a noob as well… I learn by asking questions, so… I noticed you said ‘recreational properties’ what kind of properties are those and what is it you have read or seen that let’s you know that they might be a good investment as far as real estate is concerned?
Good question what do you mean by recreational, this could and will affect types of loans available. Also as a reminder to the people who are looking at manufactured or mobile homes as an investment, these are considered depreciating assets to lenders and much harder to get financing, the banks don’t care that land may be the value factor.