Are you thinking about investing in a rental property in The Woodlands or Magnolia? It’s an exciting time to do so today as prices are just starting to inch up on homes in The Woodlands and Magnolia, thanks to new business’s like Exxon. Now you can feel more comfortable knowing that your investment will increase in value.
Like many other things in life, the first time doing something is the hardest. You will have to track back through some of the mud you went through buying your personal property and then some.
Financing a second property can be an interesting, yet scary process, but being prepared is the key. It all starts with your credit. Do an early credit check while you’re still in the beginning thinking process. This way, you can correct any surprises or mistakes in plenty of time. Even if your credit isn’t perfect, you can always just try to get pre-approved. What’s the worst that can happen? Even if the answer is a ‘no’ today, you will learn what needs to be done to get a ‘yes’ the next time. If what’s presented to you is still unclear, contact the RockStar Group today, so we can point you in the right direction.
- If you are truly buying an investment property, then you need to say so on the application. Even if it means you don’t get everything in the deal that you want, the legal ramifications for stating that you intend to live in a property that you don’t can be substantial.
- Consult a tax advisor about how the property is to be used so they can advise you on the best options — but understand the numbers. Know why you are making the decisions that you are. Make sure your best interests are being met.
- You need to know whether you intend to buy a rehab property or a ready to rent situation. This matters if a construction loan is going to be necessary. Are you interested in more of a house flipping situation? Is this a vacation type home you plan to visit a couple of times a year? You need to have these decisions made from the get-go. It all matters.
- Gather up some paperwork. Try to have at least 2 months’ bank statements, 2 pay stubs, social security card, driver’s license, investment and retirement accounts, divorce or bankruptcy papers (if applicable), and anything else the bank is asking for.
- Consult your team. This by now includes an accountant, real estate agent, loan officer, attorney, and tax advisor about all your best options. An advisor that has investment property experience would be a tremendous asset to the group as well.
- After you’ve tackled everything else on the list — Let’s get approved for your loan. We have several great lenders to assist you.
Once you get the green light, you can hit the ground running looking for your first investment property. What are you waiting for? Just contact the Rick Raanes team right here.
Keller Williams The Woodlands | 281-960-1900