A quality credit score is one of the most valuable assets a real estate investor can have. This resource has the authority to not only retain attractive mortgage and refinancing rates, but amplify an investor’s negotiating power when seeking a loan. While a lower score will not automatically disqualify potential investors, this all-important number in residential redevelopment could hinder one’s ability to access certain loan programs.
Lenders view rental properties as riskier investments than primary residences, so the requirements tend to be stricter, and the interest rates are usually higher.1 Here are five things you need to know about getting a loan for your rental investment property.
Building solid business credit is a wise goal for any business owner — including real estate investors. Good business credit comes with a lot of perks. First and foremost, it may help you qualify for commercial loans in your company’s name (often at decent interest rates).