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Common Types of Investment Property Loans

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Are you looking for a smart way to start a passive income stream? Owning and managing rental properties is a wonderful method to make some extra cash while building up an impressive portfolio. However, we all have to start somewhere, and that often includes talking to a bank before purchasing your first rental. Below, we’re discussing a few different types of investment property loans to consider.

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Conventional Loans

A conventional loan is the same type of mortgage many people use to buy the home they live in. In this case, investors should be prepared to have fairly good credit and a down payment of at least 20 percent. The minimum required credit score is typically a 620, but those with a 740 or higher can usually expect the best interest rate terms.

Hard Money Loans

Another option for financing a rental property is a hard money loan. This doesn’t come from a bank, but rather a company that specifically invests in real estate properties. Instead of looking at your credit score, these organizations will take into account the property and its profitability. Keep in mind, however, that these loans are considered short-term, with most not exceeding 36 months.

Private Money Loans

If you’re having trouble securing a loan from the bank, private money loans might be an ideal option. These loans are funded by people who have a little extra money and want to invest in real estate. However, private money loans often come with a handful of formalities. For example, if a payment isn’t made, the private party could foreclose on the property.

Fix-and-Flip Loans

Fix-and-flip loans are usually optimal if you are interested in purchasing a property but want to renovate and sell it instead of renting to tenants. Hard money lenders and private money loans often engage in this type of business, but, again, they come with numerous stipulations that need to be considered.

Home Equity Loans

Do you currently own a home and have a considerable amount of equity built up? Consider taking out a home equity loan and using those funds to purchase your first investment property. After you have reoccurring monthly rent payments or sell the property in a fix-and-flip scenario, you can easily pay off your loan. While it isn’t exactly a savvy idea for those who are trying to get out of debt, it’s an option that should be considered.

Commercial Investment Property Loans

Commercial investment property loans are available for those who want to invest in business buildings or other commercial properties instead of residential units. These loans are slightly harder to secure; however, it’s still possible if you have an appropriate down payment and a high credit score.

Choosing the Right Type of Loan

Purchasing an investment property is no small decision. Therefore, it’s best to take plenty of time to research and plan before choosing which type of financing you’ll pursue. At the end of the day, it’s crucial to find a loan package that meets your unique needs.

Money Matters for the Younger Generation

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There doesn’t need to be any mysticism to being financially responsible, but sadly, this is a skill our younger generation doesn’t seem to be adequately prepared for. As a responsible and caring parent, obviously you want the best for your kids, including their happiness and success. In a money fueled world, part of that success will stem from being able to adequately manage their money and resources. 

Instilling money sense in your children begins long before they enter adulthood and even before they enter the working world. It starts at home, based on your own money etiquette. Instead of independently making money decisions for your household, initiate a family conversation about goals and how the money would be best spent. Should you save up for a nice family getaway or would it be wiser to put that money toward a needed household expense like a new computer? Allowing your children to be a part of decision-making activities will show them first hand that everything worth having requires planning, dedication, and choice.

Make sure your children know the difference between needs and wants. Of course, the lines can blur from time to time; that’s when your parental responsibility comes into play explaining the clear line of distinction between the two. Financial dishonesty can also be a pitfall you expose your children to that can lead to bigger problems down the road. It may have seemed like a good idea to rob Peter to pay Paul, but sooner or later the debt will need to be satisfied. It’s best not to get overextended to avoid such scenarios as avoiding uncomfortable phone calls from bill collectors or dealing with the impact of poor credit ratings due to untimely payments.


You talk to your children about the pitfalls of poor decisions in efforts to safeguarding their well-being. You explain the potential danger of talking or going with strangers. You try your best to prevent them from experimenting with drugs and alcohol, in hopes of keeping them safe and healthy. As a parent, you never know which advice sticks and when you will find yourself looking for an outpatient rehab center; whichever the case may be, you still do your best to educate and guide your children to being wise and understanding the potential consequences of their actions. As with all of life’s lessons, some are learned easier than others and learning financial savvy shouldn’t take a back seat with regards to importance. 


So what tools should you encourage your children to use to ensure their financial health as young adults? Make sure they understand the importance of a single dollar and how quickly they add up. It may only seem like only a $1 soda at the gas station but before you know it, those insignificant, possibly impulsive buys are turning into $20 a day if you aren’t mindful. That $20 a day then turns into $100 a week. By the end of the month, you can have mindlessly spent $400 without even batting an eye. That $400 would serve a much better purpose in the bank.

Explain the importance of keeping monthly, recurring expenses low. Whereas its more cost-effective to subscribe to a magazine versus paying the cover price each month at the newsstand, be mindful of just how many subscriptions you maintain. When you start to figure just how many monthly subscription services are out there, from Netflix to Amazon Prime, stop and consider which of these services are essential before you find that upwards of $250 a month can be spent on these services. Take the time to evaluate the big financial picture and make your decisions accordingly.

Getting Business Finance With a Poor Credit History

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If you’ve previously suffered from adverse credit, then it can be difficult to raise additional finance for your business through a bank. The good news is that there are options available to you that could allow you to get access to the funds quickly and with a minimal amount of fuss.

There are a lot of different routes available when it comes to getting funding for your small business, so don’t panic if the bank has said no due to your credit history. The business loan market continues to grow and more and more lenders are beginning to understand and take steps to meet the need for poor credit business loans. After all, a few financial mistakes in the past shouldn’t affect your ability to start a business in the future. So, what are your options? Here are some choices that you might want to consider.

Unsecured Business Loans:

Unsecured business loans only used to be available from big banks, but that has all changed these days with a wide range of specialist lenders, such as peer to peer lenders, entering the market. As long as the loan is considered affordable, an unsecured loan can be arranged for most businesses – regardless of credit rating.

Asset Finance:

Asset finance is an ideal option for companies that have a large number of assets in their name but are struggling for capital. Asset finance can be used to raise funds against current assets or to purchase new ones. Since the asset is taken as security for the loan, bad credit is usually more likely to be considered here as the risk is lower for the lender, which increases the chance of the application being accepted.

Invoice Finance:

Invoice finance is another popular option used by businesses with a poor credit history. If the business is currently owed a lot of money via invoices at any one time, there’s a high chance that they will quality for invoice finance. Once this type of finance is arranged, the lender will release a high percentage of any acceptable invoice issued as soon as it’s raised, helping to ease business cash flow.

Merchant Cash Advance:

This is an ideal option for businesses that take large amounts of money through a card terminal. It allows you to raise money quickly and the lender is repaid easily by automatically taking a set percentage off each future sale.

Will I Pay More Due to Adverse Credit?

Getting approved for a line of credit is possible even when your credit score isn’t great but bear in mind that it will often come at a slightly higher rate in comparison to a business with a strong credit history. How much will depend on a number of factors including the type of product chosen and the security that is offered to the lender.  Unsecured loans offer little security and, therefore, tend to have increased rates, while other options such as asset finance tend to be cheaper due to a high level of security offered to the lender.

Which of these options is best for your business?

How to Turn Your Junk into Cash

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If you have a lot of junk but not enough cash, then you need to find a way to sell it. However, this can be easier said than done. The way you go about it can make the difference in how much you are able to get and how soon you make money. Therefore, use the following tips and you’ll be able to turn your junk into cash in no time flat:

Make a List

The first thing to do is make a list in general. This should include everything that you own in the physical world. Even if you would never dream of selling it, you should write it down. Sometimes, it helps to walk through each room and take your time to note down what you see. The reason is, you are simply trying to get an inventory of what you own. Then, you are going to see if there are redundancies. For instance, if you have two extra lamps that you never use, those might be candidates for flipping to someone else for to save a little extra cash.

Use the 80/20 Rule

This next part is very important. However, it is also difficult for a lot people. You need to make a list of the 20 percent of items you would keep if you had to throw out the other 80 percent. Take your time with this part. Once you have that list, then you can try to sell everything that was not in that top 20 percent. It might feel hard, but it’s a way to clean out your life and gain extra income. So, stay strong.

Use Online Markets

With the internet, you don’t have to sell things at garage sales anymore. This is still possible, but it can take longer to flip your things. Instead, leverage the power of reaching everyone in your area that is looking to buy items. Get an account on Facebook, Craigslist, and other local markets online that service your area. The, begin taking great photos and posting each item. Make sure the descriptions are specific. You really want to put yourself in the mind of an advertiser here.

Negotiate

Everyone has a price they are willing to pay for your item. However, this price might be different than what you want for it. At the end of the day, your ability to get more money for your junk will come down to negotiating. You don’t need to act like a used car salesman. However, a few simple tricks will help you. First, price the item slightly higher than you are willing to sell it for. This gives you room to negotiate and let the buyer feel like they are getting a great deal. Secondly, always make a counter offer. A lot of times you can meet right in the middle.

Rent It

If all else fails, do not give up hope. You can still make money from your things that you no longer use. Instead of selling them for a lot of money upfront, consider renting them. Some people may be willing to pay small sums of money per day or hour instead of one lump sum to buy it.

5 Ways to Save More Money

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If you want to increase your savings, it can be a challenge. There are always new bills to pay and new items you want to purchase. However, if you follow the right plan, you can save enough money to achieve your financial goals. That way, you can build your nest egg, go on that vacation, or have the peace of mind that you are prepared for emergencies. Here are 5 things to start doing today if you want to save more money, and perhaps achieve a Floyd Mayweather net worth status:

Automate It
The first step you should take if you want to save money is to automate the process. In other words, there should be a way for your income to go directly to a savings account. If you work for an employer, have them do this via payroll. If you are self-employed, then ask your bank to automatically send a portion of your savings to your special account. If you do this often, it will add up over time. Soon, you’ll more savings than you ever thought.

Don’t Look

The biggest challenge with saving money is avoiding the temptation to look. You might want to see the progress. However, in reality you should avoid taking a peek. The reason is simple: you will be tempted. When you start to see how much you have saved, it can be a challenge. Now, you might want to take some out “just once” for that big purchase. This is a big mistake.

Get a Separate Account

There should be a separate account for your savings. It should be different than your business or personal checking account. Don’t keep them together. That is one of the biggest mistakes people make. They think it won’t make them tempted, but it will. If you don’t have a different account, you will accidentally use your savings. It also makes it harder to keep things organized. The best bet is to just open a free or cheap account, even with another bank.

Make a Budget

Without a budget, it’s going to be hard to stay on track. You will forget how much you are allowed to spend or how much to save. Discipline is the key. Having a budget gives you direction. When creating your budget, be sure to account for different expenses like education, health, and even entertainment. You are only human, so it is natural that you will want to have some fun and spend your money on things you don’t quite need.

Keep Your Goals in Mind

Your personal goals are something that mean a lot to you. They should be customized to your feelings, your desires, and your needs. Don’t adopt someone else’s goals just because it is more convenient. In addition to setting goals in the first place, you need to review them. This serves a few purposes. First, it keeps you motivated. While you may feel motivated at first, this can wane. Additionally, it keeps your focused and lets you correct course. You might start to get off track and it helps to have a way to pull yourself back into alignment with what you are really trying to accomplish.