Minneapolis Minnesota Real Estate Blog

Downtown Minneapolis Condos: Real Estate Professional Discusses Ways to Finance Rehab Properties in Downtown Minneapolis Condos

You need to interview multiple brokers rather than just using the first one you come across. It is the same as choosing any other expert. Call around the Downtown Minneapolis Condos area to make sure you are getting exactly what you need.

It is much more difficult to get traditional financing for these properties because they are looked at a little different than a primary residence.

When you use fixers you can begin by getting a hold of mortgage brokers that do traditional financing, although your best chance is probably a hard money lender or a mortgage broker that has access to hard money lenders.

You can check our local newspaper for the Downtown Minneapolis Condos area, for people seeking hard money lenders or investment property financiers. You may find them by looking for classifieds under financing or mortgages or by asking their real estate agent.

Hard money lenders are much more flexible. For example, while most banks look at the current estimated value to determine how much money they will loan, hard money lenders will look at the projected value after repairs to determine the amount of money they will loan.

You may even find that it is the bank loan officer in Downtown Minneapolis Condos that knows the procedures to follow and how to find the right people to assist you in obtaining acceptable financing for your investment property.

Traditional financing is much cheaper than getting a hard money loan. Interest rates average between 12-16% with a possible 3 to 5 point deposit.

Why would anyone pay these rates? Well, the major benefit is that they will lend more money than a traditional lender and approve more properties.

Make sure you include them in your purchase and holding costs so that you end up with the profits you are looking for on the property after all is said and done and you simply look at the costs of hard money loans as a cost of doing business.

There is a lot of free information available to you about buying, selling or investing in  Minneapolis Condos or Minneapolis Lofts. For complete information about the Downtown Minneapolis condo market including current condos lofts for sale, values, and more please visit the most complete website online www.LivingInDowntownMinneapolis.com dedicated to everything Downtown Minneapolis Condos.  Contact Mike Weiland & Elke Stephan of The Weiland Group of Keller Williams with any of your real estate or mortgage related questions by filling out the form below.

P.S. Free weekly list of Downtown Minneapolis Condos including private listings and foreclosures in the most popular locations call the 24 Hour Recorded Information Hotline Now for details...1-888-391-9039 Ext. 126 or visit www.LivingInDowntownMinneapolis.com.