Analyzing Loans for Real Estate Investing before you Take One
It’s true that there’s no depreciation in properties. However, there will be times that you’ll fail in your investments if you don’t analyze and factor all costs involved in your application of loans for real estate investing. In real estate, it’s the market that dictates your profit. When you sell a property, you cannot decide how much your markup should be – it is the price of your competition, interest rate, and a lot of other factors that will determine the selling price. Types of Mortgage Loans From the perspective of an investor, these are popular mortgage types: • Fixed Rate – predictable, with low risk, but do not always have the lowest rate. • Adjustable Rate (ARM) – may offer lower rates initially but you must assume the rise of the interest rate throughout the life of your investment. • Zero Down – no down payment but be aware…