The Ideal Investment Property at the Shore: Part 2 of 4
Four Parts of an Ideal Investment
Part 2: Mo’ money No problems
So, you’ve found the perfect location with which to sink your dough. Now, Show Me the Money!!…lol… just kidding but seriously this is the most important step in the whole process. What is the origin of the financial aspect which is funding this entire venture? Here are some options and unless you are bartering goods or services (which I doubt but I could be wrong) I highly advise you to seek the counsel of a Trusted Financial Advisor:
- CASH…is still King. If you have the cash to fund your Investment Property (IP) then this is clearly the Quickest & Easiest method in the game.
- 401K or IRA which may only be an option for folks who’ve invested during their career years and may not be an option for those of a younger generation. But nonetheless this could still be a potential option to purchase your IP.
- HELOC: Pulling “Cash” from a Home Equity Line of Credit. In my past experience, this was comparable to a Cash Deal.
- Mortgage Lender…by far the most common yet with the most amount of Red Tape & Risk but with an equal level Reward
Whichever purchasing option you choose, and there very well may be others not mentioned above, I’ll reiterate… this is the Most Important Step and the basic foundation to investing in Real Estate. This step will lead you in the direction towards what price range you can afford to invest within. Make an effort to NOT “put the cart before the horse” and start looking at properties first and then find out your price range. This method could lead to disappointment and that is no way to begin this amazing process.
*Very Important…First, you need to know what you can afford. Bottom line.