Buying your First Rental Property
Real Estate has helped a great deal of people become rich and successful. Buying your first rental property can be intimidating, but it could be well worth the risk if you are prepared. Here are some helpful tips to make sure your first rental property is a great success:
- Understand the responsibility of the owner of rental properties
- Investing in rental properties is not for the faint of heart. When a door knob breaks or house floods, you are the one who gets the call at 3:00 in the morning. Being somewhat of a handyman helps you save money, unless you want to forfeit your profit for a plumber or repairman.
- Make sure you’re financially prepared
- Before you purchase your first rental property, you’ll want to pay down your debt. If something goes wrong, sitting on a pile of student loans or medical bills is not the best situation to be in. Rental properties require much more money up front than owner-occupied homes so it would be a great idea to raise money for the down payment.
- Research locations
- Finding the perfect city is key when buying your first rental property. Take Los Angeles for example. LA is filled with hopeful young adults trying to make it in show business, and until they do, they have to rent out small apartments in affordable areas. Areas that have a high amount of renters, plenty of jobs, and businesses that are popping up left and right are great locations to be looking at.
- Find a trustworthy private lender
- Finding a private lender is extremely important if your rental property is a fixer upper. Traditional banks will only lend you money based on the current property value, but hard money lenders will take into consideration the future property value.
If you have stumbled on a rental property that you think would be a great investment, contact JCAP Private Lending and we will set you up with a hard money loan.
We Say YES! When Banks Say NO!
About JCAP Private Lending
JCAP Private Lending is a Direct Lender who closes and services Investor Funded Short-Term Real Estate Loans. Our experienced team has been providing quality mortgage services for over 30 years. JCAP Private Lending is an Asset Based Lender who steps in to quickly solve a short-term financial need secured by Real Estate. JCAP has an innovative approach to lending, focusing on speed, simplicity, and safety for borrowers and investors. JCAP’s operating philosophy is simple – “We Care & We Serve”